DB Realty township project in Pune has been cancelled by a local development authority, which the company has termed as arbitrary and illegal.
The eco-friendly township project at Bhosari, Pune was awarded to the company in August 2009 by the Pimpri Chinchwad New Town Development Authority and the same was to be developed through a joint venture, DB Realty said in a filing to the Bombay Stock Exchange today.
On June 10, the authority informed the joint venture that “the bidding process for the selection of a developer stands annulled and hence, the letter of allotment dated August 25, 2009, issued in the name of joint venture stands cancelled and has refunded the upfront deposits,” it added.
The company said the cancellation of the project after a period of 22 months is “arbitrary and illegal and (it) has recorded its protest against the cancellation’’.
DB Realty said it would challenge the decision of the authority and is currently seeking legal advice for taking the necessary steps.
The company’s promoters, Mr Shahid Balwa and Mr Vinod Goenka, are currently under the Government’s scanner for their involvement in the 2G telecom scam. With the investigation into the high-profile case going on, both are at present lodged in jail.
Earlier, in May, the company said it had appointed Mr K.M. Goenka, father of Mr Vinod Goenka, as the non-executive chairman of its board of directors and also inducted three independent directors.
The company shares were trading 1.76 per cent down at Rs 81.15 in the afternoon session on the BSE.