The list of trouble spots for real estate firm DB Realty just keeps piling. After seeing its promoter being accused of a major financial scam and sent to jail and exodus of directors from the board, now its proposed township project in Pune has been scrapped by the city based local body, Pimpri Chinchwad New Town Development Authority (PCNTDA).
The project was supposed to be implemented through a joint venture DB Conwood Man Ajwani JV.
Primpri Chinchwad New Town Development Authority had issued a letter to DB Conwood Man Ajwani ioint venture in August, 2009 for the development of eco-friendly, township at Sector 12 at Bhosari, Pune. The DB Man Realty Ltd was the special purpose vehicle formed by the JV partners for the purpose of executing and implementing of the project.
The SPV was awaiting the consent from the authority for execution of the development agreement of the project. The local authority in a letter has informed the JV that the bidding process for the selection of a developer stand annulled and so the letter of authority granted to the JV firm around two years ago stands cancelled. It has also refund the upfront deposits.
DB Realty has termed the cancellation arbitrary and illegal and is seeking professional advice for taking steps to challenge the annulment of award of tender as per the legal recourses available to it.
DB Realty scrip rose 0.7 per cent to close at Rs 83.2 on Friday.
See our earlier report.