Century Textiles Acquires Rs 1,100 Crore Prime Land from Nusli Wadia

In a move concluding a protracted legal dispute, Century Textiles and Industries, part of the Aditya Birla Group, announced on Tuesday that it has acquired a 10-acre land parcel in Worli, Mumbai, from Nusli Wadia, chairman of the Wadia Group. The deal, valued at Rs. 1,100 crore, transfers ownership of the prime property to Century Textiles.

The newly acquired land will be developed by Birla Estates, the company's real estate subsidiary. According to a filing with the stock exchange, the addition of this land enhances Century Textiles' total landholding in Worli to approximately 30 acres, with a potential booking value of Rs. 28,000 crore. The 10-acre parcel alone is expected to contribute an estimated Rs. 14,000 crore to the company's booking value.

The transaction also marks a significant milestone in resolving the legal dispute that began in 2009. The dispute arose when Nusli Wadia challenged Century Textiles' development plans for land leased by Nowrosjee Wadia, his great-grandfather, to Century Textile Mills for a 999-year period. After the mill’s closure in 2007, Wadia contended that Century Textiles needed approval for any development. The case led to a court stay on construction in 2010.

In May 2022, Wadia issued a "caution notice" claiming that Century Textiles misrepresented the size of its landholdings and warned the public against engaging with the company regarding its projects, including Birla Niyaara. Century Textiles responded by clarifying that the 10-acre parcel in question was not part of the land it had claimed for development.

Century Textiles emphasized the significance of the acquisition in its statement, noting that Worli remains a highly sought-after location in South Mumbai. The new landholding will complement Birla Niyaara, Birla Estates' flagship project, which has achieved substantial success with sales exceeding Rs. 5,700 crore.

Both Century Textiles and Nusli Wadia are expected to file consent terms with the court to formalize the resolution of their dispute.

BS