Bombay Dyeing jumps 5% on favourable Bombay HC order

Moneycontrol Bureau

Shares of Bombay Dyeing extended gains (up 5 percent) intraday on Thursday as the Bombay High Court's nod injected relief. The HC has allowed the Wadia group controlled company to handover land to local authorities in Mumbai, at a single location, instead of two different locations.

Bombay Dyeing owned and sought to redevelop the land from two cotton mills located in the Lower Parel and Wadala regions of Mumbai. As per the local Development Control Regulations of 1991, 34 percent land has to be surrendered to Maharashtra Housing & Area Development Authority (MHADA) and 33 percent to Brihanmumbai Municipal Corporation (BMC). Bombay Dyeing was initially supposed to surrender 52331.55 sq. m at Wadala and 12823.39 at Lower Parel.

However, Bombay Dyeing, as a part of an integrated proposal, offered to surrender over 66,000 sq m of land from the Wadala land parcel, provided that the Lower Parel land parcel would remain untouched.

This plan for redevelopment has been upheld, with the Bombay HC ruling that the final discretion over where to surrender land, in such a scheme of redevelopment, rests with the developer Bombay Dyeing, in this case. The Court also held that Bombay Dyeing’s proposal was sound in law and was fully compliant with the local regulations.

The mill workers are likely to appeal against the order in the apex court.

At 09:58 hrs, the stock was quoting at Rs 71.75, up Rs 2.35, or 3.39 percent on the BSE.