SC verdict on Mumbai forest land boosts Oberoi Realty, Godrej Properties
Shares of real-estate firms Godrej Properties and Oberoi Realty enjoyed significant gains in early morning trade on Friday, thanks to the Supreme Court's favourable verdict on Mumbai private forest land.
The apex court on Thursday quashed all prior notices and orders regarding encroached forest land in different areas bordering the rambling Sanjay Gandhi National Park in Mumbai.
Oberoi had purchased a 19-acre plot of land from the Glaxo-owned Burroughs Wellcome in Mulund for Rs 220 crore in the year of 2005. But, the forest department intervened and didn't allow the builder to develop the property. Ever since then, the land has been lying vacant.
But, the apex court's verdict freed private forest land for realty projects. It means Oberoi's 3.3 million square feet Mulund project will now see fruition. The project is expected to add Rs 5,000 crore to the reality firm's revenue.
Prakash Paddikal, president of the Hillside Resident Welfare Association (HRWA), also welcomed the verdict, saying it came as a big relief to nearly 5 lakh people living in and around Mumbai.
Speaking on the topic, he added, "In fact, it accepts our contention that we were never encroachers on forest land, we were living in flats whose building plans were approved the Municipal Corporation of Greater Mumbai (MCGM) and to whom MCGM has given occupation certificate."
Oberoi Realty shares jumped 9 per cent to Rs 217 apiece, while Godrej Properties' stock gained 5.35 per cent to Rs 163.50 a share in opening trade on Friday.