Mumbai: While Mumbai-based developer Kalpataru Limited has sought deregistration with Maharashtra Real Estate Regulatory Authority (MahaRERA) of its Pune project Kalpataru Centrino, on the other hand, it has entered into a development agreement with Indian Hume Pipe (IHP) to develop the latter’s defunct factory in Vadgaon Budruk, Pune.
The agreement to develop, construct, market and complete the project spread over 14.77 acres was executed on May 21 and registered on May 22, as per the documents available through CRE Matrix, a real estate data analytics firm.
The agreement value stated in the records is Rs166.23 crore and Rs10.63 crore was paid towards the stamp duty.
The revenue from the sale of the project will be shared between Kalpataru and IHP in 67.5% and 32.5%, respectively. “The company’s (IHP’s) share of shared revenue is re-negotiated to 32.50% instead of 34% and correspondingly the share of the developer is 67.50% instead of 66% of the shared revenue. This was necessitated due to abnormal increase in development costs, change in development rules and enhancement in the size of the project, from the time of signing of the Memorandum of Understanding,” read a regulatory filing by IHP.
Back on September 10, 2018, both companies had entered into a memorandum of understanding (MOU) for the same plot; however, the formalities did not go forward immediately. It is only after over four and a half years, the agreement was signed. As per the information available, Kalpataru will create residential towers including certain retail amenities. However, prior to that the reservation of the plot will have to be converted from the existing industrial use to residential. Kalpataru declined to respond to the agreement, when it was approached for a comment and to know more about the plans.
According to market sources, the land parcel has the potential to develop around 1.2 million sq ft of residential space. Since 1969, Indian Hume Pipe had its pipe manufacturing factory at Vadgaon Budruk in Pune, which closed in November 2015.
On Sunday, The Free Press Journal reported on 88 housing projects including that of Kalpataru Centrino in Pune’s Yerwada applied with the real estate regulatory to get it deregistered. In the case of Kalpataru, it claims that it is owing to them exiting the project and it did not sell any units in Kalpataru Centrino. As per the regulation, the claims made by the developers have to be vetted through a public notice if there are any claims pending prior to deregistering them.
