By THE NEWSMAN OF INDIA.COM| In a significant breakthrough, NBCC (India) Limited and the Government of NCT of Delhi have reached a comprehensive settlement to resolve long-pending litigation over a prime land parcel in Sultanpur–Ghitorni village, South Delhi. The resolution, recorded through the Minutes of Meeting chaired by the Lieutenant Governor of Delhi, brings closure to years of legal and administrative uncertainty surrounding the 42.46-acre property.

Under the settlement, the total land will be equally divided between NBCC and GNCTD, granting NBCC a 21.23-acre prime parcel in Ghitorni. Following receipt of approvals from the Lieutenant Governor and the Delhi Government, NBCC is now poised to develop a landmark mixed-use project on its allotted share.

As per the agreed terms, NBCC will pay a one-time land premium of ₹135 crore along with a lump-sum interest of ₹15 crore to the Land & Building Department, GNCTD. In addition, arrears of ground rent at 2.5 percent per annum from 2006 on the said premium will be payable. The total financial outgo under these heads is estimated at approximately ₹220 crore.

NBCC will also transfer to GNCTD the ground rent and premium received for land already utilised by National Buildings Organisation (2.5 acres) and Delhi Metro Rail Corporation (12.45 acres) up to 2025. Further, NBCC will reimburse ₹2.82 crore towards premium paid by DMRC and pass on any premium received from NBO for land portions already transferred.

Upon receipt of full payment, GNCTD will execute a perpetual lease deed in favour of NBCC for the 21.23-acre land parcel. The approved settlement grants NBCC development rights in line with the Master Plan for Delhi (MPD-2021), including provisions for sub-leasing and mixed-use development as per city zoning norms. The settlement will be placed before the Delhi High Court, following which NBCC will move to withdraw the pending writ petition.

The proposed development is expected to yield a built-up area of around 4.45 lakh square metres. Based on current projections, the project carries a revenue potential of approximately ₹8,500 crore, making it one of NBCC’s most significant urban development initiatives in Delhi.

NBCC management has underscored the importance of ending a protracted dispute and securing clear development rights over a strategic land parcel. The settlement not only strengthens cooperative governance between NBCC and the Delhi Government but also unlocks valuable urban land for planned, sustainable growth. This decisive resolution marks a new chapter in NBCC’s journey, reinforcing its role as a key public sector developer of large-scale, high-impact infrastructure and redevelopment projects in the national capital.