Real estate firm DLF will take appropriate legal action against NOIDA (New Okhla Industrial Development Authority) Authority's demand notice for payment of Rs 235 crore in the latter's favour, the company said in an exchange filing on December 29.
"The demand notice issued by NOIDA is completely contrary and a violation of the order of the Hon’ble Supreme Court orders and bereft of any merits," it stated.
Also Read: Noida Authority slaps Rs 235-crore payment notice on DLF in Mall of India land case
In 2004, DLF had emerged as the successful bidder in an open auction conducted by the authority for a parcel of land in Sector-18. The company says that it paid the entire consideration as demanded by NOIDA, following which a lease deed was executed.
However, the previous owner of the land Reddy Veeranna later objected to the acquisition process and claimed that the compensation was “unfair” and the matter went to court.
The Supreme Court in its judgment stated that since the acquisition of the land in question was made by NOIDA, therefore, the liability to pay the amount of compensation would be of NOIDA.
"The judgement of the Supreme Court does not impose any liability for any enhanced compensation payable in relation to the land on DLF," the company said.
According to the Authority officials, the notice was served to the developer on December 23.
"We have issued a notice on December 23 to DLF for payment of Rs 235 crore to the Authority in connection with the dispute related to land to Mall of India. The developer will have to pay the desired amount within 15 days else appropriate legal actions will be taken,” a Noida Authority source had told Moneycontrol.
In Q2, DLF reported a net profit of Rs 487 crore, reflecting a 28 percent year-on-year (YoY) increase. The company clocked new residential sales bookings of Rs 2,052 crore, reflecting a YoY growth of 36 percent. Cumulative new sales for H1FY23 stood at Rs 4,092 crore.
The stock has seen a 18 percent rally in the past six months. For the year, it is down 5.7 percent.
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