Shares of DLF were down over 5 percent in morning trade today ( 4 Sept, 2014) after the Punjab and Haryana High Court on Wednesday quashed the transfer of prime land in Gurgaon district by the Haryana government to the realty major.
The ruling comes a week after the Supreme Court had ordered DLF to pay Rs 630 crore penalty imposed by the competition watchdog CCI as a pre-condition for hearing the company's appeal.
A division bench of Justice Surya Kant and Justice Amol Rattan Singh held that the transfer of the acquired land to DLF by the Haryana government in February 2010 was "not fair, just and reasonable".
It directed the Haryana government to cancel the transfer of the land to DLF.
DLF was allotted the land, measuring nearly 350 acres, after competitive bidding.DLF got the land for Rs 1,750 crore. The realty company had planned an upscale housing project there with golfing facilities.However, the high court upheld the acquisition of the same land by the Haryana government which was done in 2003.The land was acquired by the state government saying it was required for public purpose.
The high court order came on six petitions filed by people, mostly villagers, in Gurgaon district against the transfer of the land to the real estate company after acquiring it.The court, however, said the Haryana government and the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) could get fresh bidding done for the same land.
The court said DLF was free to bid for the land again.
Shares of DLF were down 4.9 percent at Rs 174 on the BSE at 9.37 am today. The stock, which has lost over 20 percent in the last three months alone, was the top loser in Nifty today.
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Updated Date: Sep 04, 2014 10:56:31 IST