According to registration records accessed by Zapkey.com, up to 28 housing units worth Rs 1,238 crore have been purchased by family members and associates of D’Mart founder Radhakrishna Damani in Mumbai. This transaction is arguably the largest real estate transaction in the nation.
Apartments in Tower B of Three Sixty West:
This occurs shortly after a clause in the Budget 2023 proposals that was announced a few days prior and that was anticipated to influence the sale of ultra-luxury properties starting on April 1. Reinvestment of capital gains from the sale of long-term assets, including real estate, is limited to Rs 10 crore. This cap is not currently in effect. The documents revealed that some of the properties were also purchased in the names of corporations.
One of India’s top retailers, his associates, and businesses purchased 1,82,084 square feet of carpet in total, including 101 parking spaces.On February 3, 2023, all transactions were registered.
The purchasers have acquired apartments in Three Sixty West’s Tower B, which is situated on Annie Besant Road in Worli, Mumbai. The project’s redevelopment was co-financed by builder Sudhakar Shetty and property developer Vikas Oberoi.
In 2019, Sudhakar Shetty’s business, Skylark Buildcon, which is a collaborator on this project, obtained a loan from DHFL (now Piramal Finance) for Rs 1,000 crore with a term of 72 months (a 48-month moratorium and a 24-month repayment period) and an interest rate of 14.22 percent. According to information provided by Propstack, units in Oberoi 360 West were given as collateral.
“We can expect many more luxury home deals to be registered before March 31, 2023, before the new provision kicks in,” said Sandeep Reddy, Founder, Zapkey.com.
According to a regulatory filing made on February 4 by Mumbai-based Oberoi Realty, its shareholders had approved the purchase or acquisition of residential properties in the Oasis Realty-built project Three Sixty West for up to Rs 4,000 crore in December 2022. It also stated that it was a significant related party transaction.
According to Oberoi Realty, the project’s residential premises have been acquired or purchased by the company. The business claimed to have acquired 5,23,039 square feet of carpet in total. There were 63 units purchased in total, and the company spent a total of Rs 3,403 crore as consideration.
“Consequently, the company has also recovered its entire funding towards construction cost and other deposits, as well as its share of profit, from Oasis Realty,” it said in a regulatory filing.
Effects of stamp duties imposed:
For all sales that will be impacted over the course of the next three years, the stamp duty paid for the initial purchase of the units will be able to be written off by the subsequent buyer of those units.
Radhakishan Damani and his brother Gopikishan Damani previously purchased an independent home in Mumbai’s affluent Malabar Hill neighborhood for Rs 1,001 crore in 2021, making it one of the city’s largest real estate deals. The registration had occurred on March 31, 2021, the final day that Maharashtra’s reduced 3 percent stamp duty on the sale of housing units would have been in effect.
To stimulate the stagnant real estate market, which has been doubly hard hit by the Covid pandemic, the Maharashtra government announced on August 26, 2020 that the stamp duty on the sale of housing units would temporarily be reduced from 5 percent to 2 percent until December 31, 2020. From January 1 through March 31, 2021, there was a 3 percent stamp duty.
The same day, the Maharashtra government announced that it would not continue to waive the stamp duty on property registrations and would instead return to the previous Ready Reckoner rates of 5% for the fiscal year 2021–2022.
According to documents accessed by the real estate data and analytics company Propstack, Radhakishan Damani’s D’Mart also made seven real estate purchases totaling Rs 400 crore during Covid. It purchased properties in cities like Mumbai, Hyderabad, Pune, and Bengaluru. The company operates in 11 states and one union territory. Instead of leasing properties, the retailer usually buys them.
