Company Disclosure Summary

Chronological Development of Events

November 1, 2025:

  • Board of Directors meeting held (1:30 PM to 1:50 PM) approved issuance of Notice of Forfeiture and Termination to GCD Prime
  • Termination notice issued under Clause 11.3 of Joint Development Agreement dated August 11, 2022
  • Reason: Developer's failure to revoke suspension order of license from Haryana Government despite more than two years of efforts
  • Amount paid by developer (₹50 crore advance) to be forfeited after 15 days from receipt of notice
  • JDA to stand terminated upon forfeiture

March 18, 2026:

  • Company received notice from GCD Prime under Section 21 of Arbitration and Conciliation Act, 1996
  • Developer invoked arbitration clause (Clause 14 of JDA)

July 28, 2026:

  • Hon'ble Delhi High Court (Justice Jasmeet Singh) pronounced judgment dismissing GCD Prime's Section 9 petition
  • Petition sought: Stay on termination notice dated November 1, 2025; Restraint on DCM from interfering with developer's rights; Prevention of third-party rights creation
  • Court found no prima facie case, balance of convenience, or risk of irreparable injury in developer's favor
  • Court determined JDA was non-determinable contract but developer failed to meet tests for interim relief
  • Developer had invested approximately ₹72 crores in the project

August 7, 2026:

  • Company received email (09:09 AM) through developer's advocates serving copy of appeal
  • GCD Prime filed appeal before Hon'ble High Court of Delhi seeking to set aside July 28, 2026 order

Project Background

  • Joint Development Agreement dated August 11, 2022 (registered August 24, 2022) for 68.35 acres at Village Bir Hisar, Sector-23, Hisar, Haryana
  • Development under Deen Dayal Jan Awas Yojana-2016 (DDJAY-2016) policy
  • Revenue sharing: DCM 55%, GCD Prime 45% of net sales revenue
  • License No. 179 dated November 7, 2022 obtained from Director, Town and Country Planning, Haryana
  • HRERA Registration No. HRERA-PKL-HSR-427-2023 dated March 15, 2023
  • License suspended April 18, 2023 by Director General, Town and Country Planning, Haryana
  • HRERA registration kept in abeyance, escrow account (HDFC Bank No. 00030350008901) frozen

Financial Implications

  • As per Annexure disclosures: "Not determinable at this stage" for both expected financial implication and quantum of claims
  • Developer claims approximately ₹72 crores investment including:
  • ₹30 crore + ₹6 crore + ₹10 crore deposits to DCM
  • ₹5.88 crore external development charges
  • ₹50.10 lakh license fee
  • ₹7.97 crore bank guarantees
  • ₹1.50 crore stamp duty
  • ₹15.51 lakh RERA registration
  • ₹10 lakh other approvals
  • ₹5 crore on-site development work

Current Status

  • Arbitration proceedings initiated with appointment of Hon'ble Mr. Justice (Retd.) Badar Durrez Ahmed as Sole Arbitrator
  • Appeal against High Court dismissal pending before Delhi High Court
  • Project remains suspended with license suspension in effect