DELHI: The government has allowed Dubai-based Limitless to exit its joint venture with realty major DLFBSE -1.96 % and repatriate capital of about Rs 200 crore as the partners were not able to acquire land to develop a project in Karnataka.
The Foreign Investment Promotion Board (FIPB) has approved the proposal of DLF Limitless Developers Pvt Ltd, the 50:50 joint venture between DLF and Limitless, an official statement said.
The proposal was related to exit of foreign investors and the repatriation of capital as the construction sector project could not even acquire land, it added.
Sources said Limitless, a part of Dubai World, had invested around Rs 200 crore in the joint venture.
Country's largest realty firm DLF and Limitless had formed the JV in 2007 to develop a township spread over 9,178 acre at Bidadi in Karnataka, but the project did not take off as the state government could not initiate land acquisition.
Karnataka government had returned Rs 400 crore to the joint venture in April, 2009.
After that, DLF Limitless Developers had approached FIPB to allow transfer of shares held by Limitless to DLF subsidiary, DLF Home Developers.