DELHI: Realty major DLFBSE -0.49 % will get a refund of around Rs 700 crore from the Delhi Development Authority (DDA) for returning a 35-acre plot of land it had acquired in 2007 in Dwarka to build a convention centre, a senior company executive said.
Senior executives at both DLF and DDA said a decision has been taken and an announcement would be made this week. The spokesman for DLF declined to comment. "DLF's allotment of the land in Dwarka has been cancelled and the refund is being processed as per rules," said a DDA spokeswoman.
The company was to build a large convention centre, three hotels, commercial complexes and meeting areas ahead of the 2010 Commonwealth Games, but was unable to start the project. Later, when DLF wanted to exit the project and sought a refund from the DDA, the development body initially refused after seeking legal advice.
DLF had acquired the plot for Rs 901 crore. It had even tried to get permission to change the structure of the company that got the land for the convention centre. DLF wanted to convert this into a consortium with a foreign partner and had identified a Japanese company that executes mega mall projects to join hands with. DDA, however, did not allow the conversion.
DLF is selling several non-core assets, including the Aman Resorts luxury hotel business, to reduce debt.