New Delhi. In a significant development, NBCC (India) Limited and the Government of the National Capital Territory of Delhi (GNCTD) have entered into a long-awaited settlement to resolve a prolonged legal dispute concerning 42.46 acres of land located in Sultanpur/Ghitorni village, South Delhi. The decision was formalised through the minutes and resolution of a meeting chaired by the Lieutenant Governor of Delhi.
Under the terms of the agreement, the total land parcel will be divided equally between NBCC and GNCTD, with NBCC receiving 21.23 acres. Following the requisite approvals from the Hon’ble Lieutenant Governor and the Delhi Government, NBCC will proceed with the development of its allotted land, thereby bringing to a close years of litigation and administrative uncertainty related to the property.
As per the settlement, NBCC will make a one-time payment of 135 crore as land premium along with 15 crore towards interest, amounting to 150 crore, to the Land and Building Department of GNCTD. In addition, NBCC will pay outstanding ground rent calculated at 2.5 per cent per annum from 2006 onwards. The total financial outgo under these heads is estimated at approximately 220 crore. NBCC will also transfer to GNCTD the ground rent and premium received up to 2025 for land utilised by the National Buildings Organisation (2.5 acres) and the Delhi Metro Rail Corporation (12.45 acres), besides reimbursing 2.82 crore paid earlier by DMRC and any premium received from NBO.
Upon receipt of the full payment, GNCTD will execute a perpetual lease deed in favour of NBCC for the 21.23-acre land parcel. The approved terms grant NBCC development rights in accordance with the Master Plan for Delhi 2021, permitting sub-leasing and mixed-use development as per city zoning norms. The agreement will be placed before the Hon’ble Delhi High Court, following which NBCC will move to withdraw its pending writ petition.
The development of the settlement area by NBCC is expected to result in a built-up area of approximately 4.45 lakh square metres, with an estimated revenue potential of around 8,500 crore. NBCC management has described the agreement as a decisive milestone, marking the end of a long-standing dispute and reinforcing the organisation’s capacity to deliver major infrastructure and redevelopment projects, while facilitating collaborative governance and sustainable urban development in the national capital.
