New Delhi: In a major breakthrough, NBCC (India) Limited and the Government of National Capital Territory (NCT) of Delhi have reached a landmark settlement to resolve a long-pending litigation concerning a large land parcel in Sultanpur/Ghitorni village, South Delhi. The agreement brings an end to years of legal and administrative uncertainty surrounding the prime land measuring 42.46 acres and paves the way for a major mixed-use development project in the national capital.
Settlement Approved Under Chairmanship of Delhi Lieutenant Governor
The settlement was finalized and officially issued through the Minutes of Meeting/Resolution chaired by the Hon’ble Lieutenant Governor of Delhi. With approvals from both the Lieutenant Governor and the Delhi Government now in place, the agreement formally resolves the dispute that had remained unresolved for several years.
Following the settlement, NBCC is set to develop a 21.23-acre prime land parcel located in Ghitorni, South Delhi – one of the city’s strategically important and rapidly developing areas.
Equal Division of Disputed Land
As per the agreed terms, the total 42.46-acre Ghitorni land will be equally divided between NBCC and the Government of NCT of Delhi (GNCTD). This results in a 21.23-acre share being allotted to NBCC for development, while the remaining portion will vest with GNCTD.
Financial Obligations and One-Time Settlement Payments
To resolve all outstanding dues related to its share of the land, NBCC will make the following payments to the Land & Building Department, GNCTD –
- One-time land premium: ₹135 crore
- Lump-sum interest: ₹15 crore
The total immediate settlement amount stands at ₹150 crore.
In addition, NBCC is required to pay arrears of ground rent at the rate of 2.5% per annum from 2006 on the land premium. Including ground rent arrears and related liabilities, the total financial outgo is estimated at approximately ₹220 crore.
Transfer and Reimbursement of Payments Related to NBO and DMRC
Under the settlement terms, NBCC will also transfer to GNCTD the ground rent and premium received for portions of land utilized by –
- NBO (2.5 acres)
- Delhi Metro Rail Corporation (DMRC) (12.45 acres)
This transfer will cover amounts received up to the year 2025.
Additionally, NBCC will reimburse ₹2.82 crore towards the premium already paid by DMRC and any premium received from NBO for land portions that have already been transferred.
Execution of Perpetual Lease Deed
Upon receipt of the full settlement amount, GNCTD will execute a perpetual lease deed in favor of NBCC for its 21.23-acre share, formally granting NBCC legal ownership and development rights over the land.
Development Rights Under Master Plan for Delhi (MPD-2021)
The approved settlement grants NBCC full development rights in accordance with the Master Plan for Delhi (MPD-2021). These rights include –
- Permission for mixed-use development
- Authority to sub-lease land as per city zoning regulations
- Compliance with prescribed urban planning and development norms
The settlement will also be submitted before the Hon’ble High Court of Delhi, and NBCC will file an application for withdrawal of the pending writ petition (WPC).
Landmark Mixed-Use Project Planned by NBCC
NBCC’s development in the allotted settlement area is expected to result in a built-up area of approximately 4.45 lakh square meters. The ambitious mixed-use project is projected to generate revenue in the range of ₹8,500 crore, significantly contributing to urban infrastructure development and economic growth in South Delhi.
Strategic Importance and Future Impact
NBCC management has underscored the importance of ending this prolonged dispute, describing the settlement as a decisive moment in the company’s journey. The resolution not only secures valuable land for a flagship project but also strengthens cooperative governance between central public sector enterprises and the Delhi government.
The agreement unlocks high-value urban land for sustainable development, enhances NBCC’s ability to deliver premier infrastructure and redevelopment projects, and sets a positive precedent for resolving complex land disputes through dialogue and collaboration.
About NBCC (India) Limited
NBCC (India) Limited is a leading Central Public Sector Enterprise specializing in construction, project management, and urban redevelopment. With a proven track record in executing large-scale government and infrastructure projects, NBCC has been instrumental in implementing strategic urban development initiatives across India.
