NCLT Bars HDIL From Claiming Worli Land Development Rights as Asset

The Mumbai bench of the National Company Law Tribunal (NCLT) has ruled that Housing Development and Infrastructure Ltd (HDIL) cannot claim development rights over a Worli property as part of its insolvency assets. The tribunal's October 15 order found that a development agreement originally executed in 2006 had been terminated in August 2013, six years before HDIL entered corporate insolvency proceedings.

The bench directed HDIL's resolution professional to exclude the development rights from the company's asset pool. The tribunal noted that HDIL had full knowledge of the agreement's termination and had even issued a confirmation letter in September 2013. The property in question measures approximately 1.5 acres.

Recondo Ltd, a construction and infrastructure company, had challenged the inclusion of these property rights, arguing it had held the larger property since 1946 under an arrangement with the Municipal Corporation of Greater Mumbai (MCGM). Recondo entered into a development agreement with the property in March 2004.