Chennai: Hiranandani Communities, a real estate venture of Niranjan Hiranandani, on Friday re-launched its 400-acre township in Chennai, which was stalled due to a long-drawn legal fight with Hirco Plc., the erstwhile investor partner of the project.
Located in Chennai’s Oragadam, the project was originally started in 2005-06. However, it was put on hold in 2012 after Hirco filed a legal case against the builder alleging fraudulent misrepresentations, conspiracy and contractual negligence.
On 6 August, the London court of International Arbitration seated in Singapore dismissed all the claims and ordered Hirco to pay Hiranandani around Rs160 crore on account of legal and other costs.
Hiranandani later bought out the entire project through auctions conducted by lenders under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI).
Within the township, Hiranandani will sell individual plots—a first for the company in Chennai.
It will also re-enter the affordable housing segment through its Chennai project and has allocated around 30% of the land for the same.
Like other townships, Hiranandani Parks will be a mix of apartments, villas, senior-aided housing and affordable housing.
The group has already sold 1,200 high-rise apartments or 20% of the project. Another 20% is expected to become operational over the coming year.
“I identified Chennai 10-15 years ago. I think there is an opportunity of growth here. Township is making very good sense here,” Niranjan Hiranandani said in an interview on the sidelines of a conference in Chennai on Friday.
With Hiranandani Communites, there are now three separate business lines within the family. House of Hiranandani is run by Niranjan’s brother Surendra while both of them jointly run Hiranandani Developers Pvt Ltd.
“The product mix in the project is good. In that micro market (Oragadam), the project stands out and they are selling at a cost bracket which is quite suitable to the market. Surrounded by many Japanese and other multinatinational firms, the place has its own economy,” said Pankaj Kapoor, managing director, Liases Foras, a real estate advisory firm.
Oragadam, located about 40 km from Chennai, is home to many auto companies, including Nissan, Daimler, Royal Enfield and Apollo Tyres.