DB Realty sells plot to cut losses

With the real estate market in the city showing no signs of picking up, a top realty firm has sold off part of its 17-acre land parcel in Dahisar meant for a residential project.

Dynamix Balwas (DB) Realty reportedly sold the land to a city-based realty firm Romell Group for Rs 134 crore, a source said.

The building that was to come up on the land given for sale will not be constructed anymore. Meanwhile, the funds accrued through the sale will be diverted to construct the buildings that are already half finished on the remaining plot, the source said.

DB Realty had brought the plot near Dahisar Check Naka in 2008. This comes under the jurisdiction of both the Brihanmumbai Municipal Corporation (BMC) and the Mira-Bhayandar Municipal Corporation (MBMC).

In a meeting held with buyers on October 4, 2016, who have been awaiting possession for more than four years, representatives from DB Realty informed them that it had sold part of the plot falling under the jurisdiction of the BMC. It assured the buyers that work would start in full swing November 2016 onwards with possession of flats being handed over to them in 2017, a person who attended the meeting said.

This paper is in possession of the minutes of the meeting, where each detail has been mentioned.

“The deal was sealed at Rs 134 crore and the payment will be received by October 15 or by the end of the month. The firm took the decision in order to fulfil its commitment to the buyers and also as a few of them had approached the Kashimira police station and the National Consumer Forum to file complaints against the firm,” a source said

A query sent to DB Realty remained unanswered as its spokesperson expressed reluctance to comment on the deal.

Dominic Romell, chairman, Romell Group, told The Asian Age over telephone, “I would not like to confirm or deny the deal at this moment.”

The Asian Age had reported in May 2016 about how some 3,500 buyers were stuck owing to the project that could not be completed for want of funds. The buyers had claimed the firm cited shortage of funds as the reason for the delay in possession.

“Buyers who had booked apartments on the plot that was sold off have been assured of a refund with interest. Further, in case the buyers do not want to avail of the refund option, then DB would facilitate an arrangement with the Romell group that has acquired the plot,” a person who attended the meeting said.

The firm had put up its to-be-constructed apartments for sale since 2009 at the rate of Rs 2,500 to Rs 2,800 per square feet. The rates in the area are now around Rs 8,000 to Rs 9,000 per square feet. The real estate firm after purchasing the plot in 2008 had decided to construct the country’s largest shopping mall at the plot but in 2009 it decided to convert its retail project into a residential one.