DLF Exits ₹10,000 Cr South Mumbai Redevelopment Project As Dispute With Hubtown Settled Over ₹800 Crore Payout

Mumbai: In a major development for Mumbai’s real estate sector, developers Hubtown and DLF have resolved their long-standing legal battle over the high-profile Tulsiwadi urban renewal project in South Mumbai. The Rs 10,000-crore project, spanning 17 acres next to the Willingdon Club in Tardeo, can now move forward after both parties agreed to consent terms, which include an Rs 800-crore payment from Hubtown to DLF.

According to an Economic Times report quoting people familiar with the matter, as part of the settlement, DLF has officially exited the redevelopment project and withdrawn all legal proceedings against Hubtown, its associate Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance, and other entities involved. DLF’s departure brings an end to years of arbitration, NCLT hearings, and complaints under RERA.

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1st Tranche Of ₹100 Cr Paid To DLF

Under the agreed terms, Hubtown-affiliated Twenty-Five Downtown will pay DLF Rs 800 crore over two years, with Rs 100 crore already paid as the first tranche. To secure the remaining amount, Hubtown has mortgaged 1.5 lakh sq ft of space in the upcoming development in DLF’s favour. Documents related to this mortgage were registered last week.

The project’s complicated history stems from a 2021 default on a Rs 900-crore loan from PNB Housing Finance, which turned non-performing. The default led to pledged shares of DLF and its partner Chinsha Property (of the Shapoorji Pallonji Group) being invoked and sold to recover dues. These shares were later acquired by Omkara Asset Reconstruction Company. While Chinsha accepted its exit and withdrew its allegations, DLF continued to challenge the transfer, citing violations of shareholder rights.

With this settlement, DLF ends its 37.5 per cent stake in the special purpose vehicle (SPV) that also previously included Chinsha and Hubtown. The SPV had already registered three residential towers with RERA and secured funding from Oaktree Capital to begin development.

A DLF spokesperson confirmed the terms of the agreement and the mortgage to ET, however Hubtown has not issued any statement regarding it.

Real estate experts say the resolution marks a shift in the sector, where structured settlements backed by real assets are increasingly being chosen over lengthy court battles. With litigation now behind it, Hubtown is expected to push ahead with the Tulsiwadi redevelopment, one of South Mumbai’s largest slum cluster projects.