Parsvnath Cancels Long-Standing JV in Chennai with SSPL and GVT

Real estate developer Parsvnath Ltd. has terminated its 15-year-old joint venture agreement in Chennai with Sumeru Soft Pvt. Ltd. (SSPL) and Gomathi Visweshwaran Trust (GVT) for a mixed-use project on Chennai’s OMR Road.

Project Details:

• The project, envisioned in 2006, aimed to develop a multi-facility complex encompassing residential apartments, service apartments, commercial spaces, and IT/ITES parks on a 31-acre plot.
• However, development never materialized due to unforeseen circumstances, and land possession remained with SSPL and GVT.

Reasons for Termination:

• Parsvnath cited infeasibility and long-term shelving of the project as reasons for the JV cancellation.

Reaching a Settlement:

• Parsvnath and GVT entered into a settlement agreement to formally dissolve the JV.
• Existing disputes regarding cost recovery and losses incurred by both parties under the JVA were addressed through arbitration.
• As per the settlement, SSPL will transfer a 7.90-acre portion of the project land to Parsvnath, free of any encumbrances or claims. This transfer serves as a full and final settlement of all outstanding claims.

Looking Ahead:

Parsvnath’s decision to terminate this long-standing JV indicates a strategic shift in their focus or potential challenges with the specific project. The transfer of a land parcel suggests they might explore alternative development plans in the future.