Shriram Properties has resolved a long-standing dispute with the Bengal government over its Uttarpara land, paving the way for the expedited development of a 314-acre township, which has been in the making for over a decade.

As part of the settlement, the developer, which has its headquarters in Bengaluru, will give up 42.37 acres in favour of the state government, relieving it from its liabilities. According to the balance sheet of Shriram Properties, the real estate developer had booked a liability of around ₹240 crore linked to the Uttarpara land dispute.

The company had acquired 314 acres of land from Hindustan Motors’ Uttarpara factory, which used to produce the iconic Ambassador passenger car in 2007. The transaction, cleared by the Left Front government led by Buddhadeb Bhattacharjee, came under scrutiny when Mamata Banerjee’s Trinamool Congress came to power in 2011.

The state argued that 4 per cent of revenue generated from the real estate projects should be shared with the government, a claim Shriram disputed and contested.

After protracted negotiations, Shriram has finally received a government order settling the dispute by conveying the 42-odd-acre land parcel in favour of the state.

Commenting on the development, Gopalakrishnan J, CEO of Shriram Properties, said, “We are pleased to have amicably resolved the long-standing commercial differences with the state government. This settlement enhances our ability to accelerate development, and we are now well-positioned to unlock meaningful value in an accelerated manner in the coming years,” he said.

The company, which has so far used up 48 acres of area, building 5 million square feet residential blocks, plans to use another 50-60 acres for itself. “We plan to develop another 5-6 million square feet area for ourselves, and are going to monetise the rest of the land,” the CEO informed.

In the past, the company had discussions with Mumbai-based Hiranandani Group, which had evinced interest in IT parks. It also reached an understanding with Logos Group, backed by ESR, for a warehousing and logistics park of over 90 acres. However, those talks hit a speed bump over the commercial dispute with the state government.

Land bank

The 42.37-acre land plot will add to the kitty of the Mamata Banerjee government, which has successfully taken back 395 acres from Hindustan Motors in Uttarpara.

In June, the Supreme Court dismissed a special leave petition filed by HM challenging the government’s resumption order, lifting the cloud of uncertainty over the ownership and possession of the valuable piece of industrial land less than 20 kilometres from Calcutta.

The state has already allotted 40 acres to wagons and passenger rail car manufacturer Titagarh Rail System for 99 years at ₹126.33 crore. At the business conclave in December, the state had earmarked a large portion of the Uttarpara land for RPSG Group for a battery storage project.