NBCC (India) Limited and the Government of the National Capital Territory of Delhi have successfully concluded negotiations to settle a longstanding legal dispute concerning a substantial 42.46-acre tract of land located in the villages of Sultanpur and Ghitorni. The resolution was documented in the minutes from a meeting led by the Honorable Lieutenant Governor of Delhi.
NBCC’s Big Break: 21 Acres Cleared for Development in Delhi
In a significant move forward, NBCC has been granted the go-ahead to develop approximately half of this land, totaling 21.23 acres. This decision comes after receiving the necessary approvals from the Lieutenant Governor and the Delhi Government, thus putting an end to years of legal and administrative wrangling.
The agreement specifies that the land will be split equally between NBCC and the Government of NCT of Delhi, with each party taking ownership of 21.23 acres. In order to finalize this arrangement, NBCC will pay a one-time land premium of ₹135 crore along with an additional ₹15 crore in accumulated interest, amounting to a total payment of ₹150 crore to the Land Building Department of the GNCTD. Additionally, NBCC is responsible for covering ground rent arrears at an annual rate of 2.5% dating back to 2006, which will total roughly ₹220 crore. Furthermore, NBCC has agreed to manage and pass on the revenues from ground rent and premiums collected from specific leased portions of the land used by the National Buildings Organization (NBO) and the Delhi Metro Rail Corporation (DMRC) until the year 2025. This includes reimbursing ₹2.82 crore to the GNCTD for premiums previously paid by the DMRC.
Upon completion of these payments, the GNCTD will formalize the agreement by issuing a perpetual lease deed for the 21.23 acres to NBCC.
This agreement allows NBCC to proceed with its development plans, which are in alignment with the Master Plan for Delhi 2021. The plan permits sub-leasing and the development of mixed-use properties according to the city’s zoning regulations. The terms of this settlement will be presented to the Honorable High Court of Delhi, and NBCC will request the withdrawal of its pending litigation.
NBCC anticipates that the development of the designated land will create a built-up area of approximately 4.45 lakh square meters, potentially generating revenues estimated at ₹8500 crore.
The resolution of this dispute marks a pivotal moment for NBCC, enabling it to focus on delivering top-tier infrastructure and redevelopment projects in Delhi. This development not only signifies progress in NBCC’s operational capabilities but also promotes cooperative governance and the effective utilization of prime urban real estate for sustainable development.
