Mahindra & Mahindra (M&M) has sold over 20.5-acre land parcel in Akurli area of Mumbai’s western suburb Kandivali for Rs 210 crore to a Pune-based company Rucha Group’s real estate development entity Blueprintify Properties.
Interestingly, the company has sold the property for less than its ready reckoner value or over Rs 223.58 crore. The said land parcel falls under No Development Zone and is bounded by the Sanjay Gandhi National Park on the east and south side.
The Mahindra Group itself also has a real estate development company Mahindra Lifespace Developers.
The deal was finalized on July 23 and was registered the next day. The transaction has attracted stamp duty of over Rs 13.41 crore, showed the documents accessed through CRE Matrix.
In Maharashtra, stamp duty is determined by the higher value between the property’s transaction price and the government-set ready reckoner rate, also known as the circle rate. If the property is sold for less than the ready reckoner rate, the stamp duty is calculated based on the ready reckoner rate rather than the transaction price.
“The sale of the Kandivali land parcel was conducted in accordance with applicable stamp duty valuation guidelines for the type of land parcel. Mahindra Lifespaces, already developing a nearby project, deemed this plot non-strategic, M&M said in response to ET’s query.
The company has an option to consider monetizing other land assets in the future, however there are no concrete plans at present. Any such decisions would depend on various factors and market conditions, the Mahindra Group company said.
The land parcel is vacant and there are no unauthorized or illegal constructions or structures on the same.
According to the conveyance agreement, no part of the floor space index or development rights has been shifted or transferred to any property and the entire development potential of the land is intact.
ET’s email query to Blueprintify Properties remained unanswered until the time of going to press.
This sale highlights the ongoing real estate activities in Mumbai’s property market and underscores the importance of strategic land transactions even in zones with development restrictions.
The Mahindra & Mahindra deal with Blueprintify Properties is a notable example of how major corporations manage their real estate assets and align with market dynamics, ensuring compliance with regulatory frameworks while optimizing their asset portfolios.
