Real Estate

Real Estate Transactions

Ekta World, Pashmina Realty lock horns over Rs.1,000-Cr project in Mumbai

Economic Times  

Realty developer Ekta World has accused another real estate developer Pashmina Realty and its directors of cheating, fraud and siphoning off money in an INR 1,000-crore redevelopment project, Lake Riviera, in the Powai suburb of Mumbai. The company has moved the Metropolitan Magistrate Court with its complaint regarding the project spread over around 3.5-acre that was being jointly developed by the companies. In 2016, Ekta World was approached by Pashmina's promoter Asit Koticha, to jointly develop the plot. Pashmina had proposed to develop a mixed-use project on the plot, which it had acquired in 2006, using Ekta's expertise in the realty sector and brand name. It was to pay 7.25% of revenue to Ekta from the already sold area and 15% revenue from the balance sale area available in the project towards development management fees. According to Pashmina, Ekta failed in discharging duties as a development manager. As per the pact, Ekta had to sell INR 50 crore worth space in the first 6 months, but could only achieve INR 20 crore in 2 years.