MCGM says not appropriate to issue stop work notice to Godrej Properties’ project, ET RealEstate

June 15, 2024
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The Municipal Corporation of Greater Mumbai (MCGM) has decided against issuing a stop work notice to Godrej Properties’ ongoing residential project in the Kandivali suburb of Mumbai as suggested by the defence ministry’s Central Ordnance Depot (COD).

Highlighting that the project is too close to the Kandivali complex of the COD, the defence ministry unit had earlier written to the civic authority seeking suspension of work at the ‘Godrej Reserve’ project.

The project is being built on an 18.6-acre land parcel and has an estimated revenue potential of Rs 7,000 crore. The developer has already launched about 1.91 million sq ft and had got bookings for 1.51 million sq ft worth Rs 2,693 crore, according to the company’s FY24 regulatory filing.

“At present there are approximately 100 ongoing developments in the vicinity of COD, Kandivali and Malad. Admittedly, the distance of the aforesaid projects been beyond 10 meters from the defence establishments, the same are permitted in accordance with the circular dated 21.10. 2016. Therefore, it shall not be in accordance with the law to issue stop work notices to such projects,” the civic authority said in its response to the COD.

The letter issued by MCGM’s building proposal department was dispatched to the COD on Tuesday. ET has reviewed a copy of the letter.

“The construction being undertaken is permissible under the provisions of Maharashtra Regional Town Planning Act, 1966 and Development Plan, 2034, which is formulated after considering all aspects of safety and security. We have not received any suggestion/ objection while making development plan 2034 and there is vast existing urban settlement and construction in the vicinity,” the letter read.

Godrej Properties declined to comment.

In a note issued in May, COD had told the civic authority that the Godrej plot is within 500 metres of the Kandivali complex. The COD cited the union government’s May 2011 guidelines specifying that construction activity is not permitted within 100 metres of any defence establishment. Further, the construction of up to a maximum of four storeys is only allowed within 100-500 metres of the periphery after securing a no-objection certificate (NOC) from the defence ministry.

Permission for the project was granted during the transition period between the Bombay High Court’s decision to discontinue the need for such NOCs last year and the Supreme Court upholding the requirement in February, an MCGM official had told ET in May.

Godrej Properties, which bought the plot in December 2022, had said the project will have a development potential of about 3.72 million sq ft with an estimated revenue potential of nearly Rs 7,000 crore based on business assumptions at the time. The project will comprise mainly premium residential apartments and some retail units.

The land parcel is in a prime location with access to the Western Express Highway, metro and suburban railway stations.

Godrej Properties recorded its best-ever quarterly and annual performance in terms of sales bookings, net profit, collections, project deliveries and business development for the period ended March.

  • Published On Jun 15, 2024 at 09:00 AM IST

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