The shares of Aditya Birla Real Estate (formerly known as Century Textiles and Industries) fell 4.57% on Wednesday after the Supreme Court overturned a 2022 ruling by the Bombay High Court, which had favoured the company in a land dispute with the Municipal Corporation of Greater Mumbai (MCGM).
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The dispute pertains to 6.31 acres of land in Worli. The land was leased by the Improvement Trust Transfer Board (now MCGM) for the welfare of workers. As per the company, after the expiry of the 28-year period of lease, the said land was to be under the ownership of Century Textiles and Industries (CTIL), as the firm had paid the full cost of the scheme (including the cost of land) and had constructed the accommodation for poorer classes at its cost.
CTIL said it had been in possession of the said land and paying the property tax. MCGM, however, did not take any steps to formally transfer the said land to CTIL, as required under the terms of the scheme and Improvement Trust Act. CTIL was ultimately compelled to file a writ before the Bombay High Court seeking a formal conveyance of the land in its favour.
The high court had passed a judgment dated March 14, 2022 directing MCGM to execute a formal conveyance in favour of CTIL. MCGM filed an appeal in the Supreme Court against the said high court judgment, and the Supreme Court has allowed the said the appeal.
Pursuant to the expiry of the lease, Aditya Birla Real Estate said it is seeking legal advice to take necessary next steps in the matter. In an exchange filing, the company said there is no immediate material financial impact.
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“Aditya Birla Real Estate wishes to clarify that the said land is separate and distinct from and not impacting Birla Niyaara project at Worli,” it said.
Aditya Birla Real Estate stock ended at Rs 2,228.40, around 3.59% lower than Tuesday’s closing.
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