In what is perhaps the biggest property deal in the country, 28 housing units worth Rs 1,238 crore have been bought by family members and associates of D’Mart founder Radhakrishna Damani in Mumbai, show registration documents accessed by Zapkey.com .
This comes close to a provision announced a few days ago in the 2023 budget, which was expected to impact the sale of uber luxury properties from April 1. A cap of Rs 10 crore has been imposed on reinvestment of capital. Gain from sale of long term assets including house property. At present no such limit is applicable.
The documents show that some properties have also been purchased in the name of companies.
The total carpet area purchased by one of India’s top retailers, its associates and companies is 1,82,084 sq ft including 101 car parks.
All transactions were registered on February 3, 2023.
Buyers have purchased apartments in Tower B of Three Sixty West, located on Annie Besant Road in Worli, Mumbai. The seller is builder Sudhakar Shetty, who partnered with real estate developer Vikas Oberoi to redevelop the project.
Most of these apartments have a carpet area of 5,000 sq ft, and cost an average of Rs 40-50 crore.
Sudhakar Shetty’s company Skylark Buildcon, which is a partner in the project, took a loan of Rs 1,000 crore from DHFL (now Piramal Finance) in 2019 at an interest rate of 14.22 per cent and a tenure of 72 months (moratorium and moratorium of 48 months) . Repayment period of 24 months). Units in Oberoi 360 West were offered as collateral, according to data provided by PropStack.
“We can expect many more luxury home deals to be registered before March 31, 2023, before the new provision comes into force,” said Sandeep Reddy, founder, Zapkey.com.
On February 4, Mumbai-based Oberoi Realty said in a regulatory filing that in December 2022, its shareholders have approved the purchase or acquisition of residential complex in Project Three Sixty West, constructed by Oasis Realty, for up to Rs 4,000 crore. This was a material related party transaction, it added.
Oberoi Realty said the company has completed the purchase or acquisition of residential premises in the project. The company said that it has purchased a total of 5,23,039 square feet of carpet area.
The total number of units purchased is 63, while the total amount paid by the company is Rs 3,403 crore.
“As a result, the company has recovered the construction cost and other deposits from Oasis Realty as well as its share of the profits,” the regulatory filing said.
The stamp duty for the purchase of units will be available for set off for all sales to the subsequent buyer of such units with effect from the next three years.
Three Sixty West by Oberoi Realty is a project that comprises of 4BHK and 5BHK units. It comprises two towers, one of which will house The Ritz-Carlton Hotel and the other of luxury residences managed by the global hospitality chain. The project with sea views probably got its name because its height is 360 meters, and all the apartments face west.
Earlier, in one of the biggest property deals in Mumbai, Radhakishan Damani and his brother Gopikishan Damani bought an independent house in Mumbai’s posh Malabar Hill area in 2021 for Rs 1,001 crore.
The registration took place on March 31, 2021, the last day when the reduced stamp duty of 3 per cent was applicable on the sale of housing units in Maharashtra.
On August 26, 2020, Maharashtra government had announced a temporary reduction in stamp duty on sale of housing units from 5 per cent to 2 per cent till December 31, 2020, to boost the stable real estate market, which has been hit hard by the Covid pandemic. was affected doubly hard. The stamp duty applicable from January 1, 2021 to March 31, 2021 was 3 percent.
The same day, the Maharashtra government said it would not extend stamp duty exemption on property registration and reverted to the earlier ready reckoner rates of 5 per cent for the financial year 2021-22.
Radhakishan Damani’s D’Mart had also acquired seven properties worth Rs 400 crore as the retail chain embarked on a property buying spree during Covid, documents accessed by real estate data and analytics firm PropStack showed .
D’Mart, which has operations in 11 states and one union territory, has bought properties in places like Mumbai, Hyderabad, Pune and Bengaluru. The retailer typically buys rather than leases properties.
(Moneycontrol has written to D’Mart and Oberoi Realty for their response. The story will be updated when we hear from them.)
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