May 29, 2013, 10.43 PM IST
The management has said that the last 40-50 days were spent in taking legal opinion, so that they could come forth and chart out a course of action. The management said that they will go to the Bombay High Court with this.
After having posted a disastrous set of fourth quarter numbers , HDIL 's stock plunged after receiving a termination notice from Mumbai International Airport Limited (MIAL) for its slum rehabilitation project. CNBC-TV18's Priyanka Gosh reports the company will fight the termination notice.
The management has spent the last 40-50 days taking all legal opinions. It plans to take the matter to the Bombay High Court.
According to Mumbai International Airport (MIAL) sources, HDIL has failed to rehabilitate dwellers and provide homes to these eligible candidates or slum dwellers by 2011. And 2011 was the deadline of the project.
Secondly, MIAL's has also claimed that HDIL has failed to provide a clean title land and that it had also failed to provide cash deposit as a performance guarantee.
Below is an excerpt from Sarang Wadhawan, VC &MD of HDIL's address to the media earlier in the day.
MIAL has put unsubstantiated claims that we were unable to fulfill the rehabilitation of people and hand over clear title land to them or give possession receipts. While that stands correct, that was not because of HDIL's fault. It is because the eligibility norms have not been amended accordingly.
While Maharashtra government came out with the notification on January 1 2012, it has since then, not issued the final notification.
The losses incurred are Rs 442 crore. The financial impact of this project can hardly be exaggerated as far as HDIL is concerned. This is just another case that we are now headed towards a deadlock and therefore that is not good news because this is another big infrastructure project getting stalled.
Action in Housing Development and Infrastructure
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