DLF Exits ₹10,000 Cr South Mumbai Redevelopment Project After Settling Dispute With Hubtown Over ₹800 Crore Payment

Hubtown and DLF have settled their long-running legal dispute concerning the Tulsiwadi urban renewal project in South Mumbai. The ₹10,000-crore project, which covers 17 acres next to the Willingdon Club in Tardeo, can now proceed after both sides accepted consent terms that include an ₹800-crore payment from Hubtown to DLF.

This resolution is significant for Mumbai’s real estate market. Hubtown and DLF have resolved their lengthy legal battle regarding the Tulsiwadi project. With the ₹10,000-crore project now cleared to move forward, both parties reached an agreement involving an ₹800-crore payment from Hubtown to DLF.

According to a report from the Economic Times, which cited sources close to the situation, the settlement means that DLF has officially exited the redevelopment project. DLF also withdrew all legal actions against Hubtown, its associate Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance, and other related entities. DLF’s exit concludes years of arbitration, NCLT hearings, and complaints under RERA.

1st Tranche Of ₹100 Cr Paid To DLF

Under the settlement terms, Hubtown-affiliated Twenty-Five Downtown will pay DLF a total of ₹800 crore over the next two years. So far, ₹100 crore has been paid as the first installment. To secure the remaining amount, Hubtown has mortgaged 1.5 lakh sq ft of space in the new development to DLF. The mortgage documents were registered last week.

The project’s complex background includes a 2021 default on a ₹900-crore loan from PNB Housing Finance, which became non-performing. This default resulted in the invocation and sale of pledged shares from DLF and its partner Chinsha Property, part of the Shapoorji Pallonji Group, to recover debts. Omkara Asset Reconstruction Company later acquired these shares. While Chinsha accepted its exit and dropped its claims, DLF continued to contest the transfer, arguing it violated shareholder rights.

With this settlement, DLF exits its 37.5 percent stake in the special purpose vehicle (SPV), which previously included Chinsha and Hubtown. The SPV had already registered three residential towers with RERA and secured funding from Oaktree Capital to start development.

A DLF spokesperson confirmed the terms of the agreement and the mortgage to the Economic Times; however, Hubtown has not released any statement about it.

Real estate experts believe this resolution signifies a shift in the sector. More structured settlements backed by real assets are being favored over prolonged court battles. With litigation now resolved, Hubtown is expected to move forward with the Tulsiwadi redevelopment, which is one of South Mumbai’s largest slum cluster projects.