Godrej Properties Shares Drop 3% As Defence Ministry Raises Objection Over ₹7,000 Cr Mumbai Project

Shares of Godrej Properties were falling on Friday as a government ministry has reportedly asked the real estate developer to stop work at one of its major housing projects.

What Happened: The Defence Ministry has raised objections to Godrej Properties’ residential project in Mumbai, demanding a halt to the development, which has an estimated revenue potential of ₹7,000 crore, Economic Times reported. The ministry reportedly claims the project is too close to the Central Ordnance Depot (COD) in Kandivali.

The Godrej Reserve project spans an 18.6-acre land parcel. The developer has already launched about 19.1 lakh square feet and secured bookings for 15.1 lakh square feet worth ₹2,693 crore, as per the company’s FY24 regulatory filing.

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In a “stop-work notice” to the Municipal Corporation of Greater Mumbai (MCGM), the Defence Ministry’s unit reportedly highlighted that the plot is within 500 meters of the Kandivali complex.

Staying Within The Line: A Godrej Properties spokesperson told the business daily that all its projects, including this one, begin only after necessary approvals have been granted from concerned authorities. They also said that the company had not received communication from any concerned authority citing any non-compliance so far.

The COD pointed to Union government guidelines from May 2011, which prohibit construction within 100 meters of any defence establishment. Construction between 100-500 meters is limited to a maximum of four storeys and requires a no-objection certificate (NOC) from the Defence Ministry.

Price Action: Godrej Properties’ share price dropped 3.01% to ₹2,729.95 in morning trade on Friday.

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