In a development that closes one of Mumbai real estate's longest-running boardroom battles, DLF and Hubtown have settled their long-standing legal dispute over the Rs 100-billion Tulsiwadi urban renewal project in South Mumbai. The redevelopment, located on a 17-acre parcel next to the Willingdon Club in Tardeo, has been stuck in courts and tribunals for years even as slum-dwellers waited for their promised homes and the free-sale component sat undeveloped.
Under the consent terms, DLF has formally withdrawn from the redevelopment scheme and terminated all legal proceedings against Hubtown, its affiliate Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance, and other parties involved. In exchange, Twenty-Five Downtown, backed by Hubtown, will pay DLF a total of Rs 800 crore over two years. As part of the agreement, Rs 100 crore has already been paid as the first tranche, with Hubtown mortgaging 150,000 sq ft of saleable space in the upcoming development in DLF's favour to secure the remaining Rs 700 crore.
The roots of the dispute go back to 2021, when the SPV developing the project, originally a joint venture between DLF (37.5%), Shapoorji Pallonji Group's Chinsha Property (37.5%), and Hubtown (25%), defaulted on a Rs 900 crore loan from PNB Housing Finance. Following the default, PNB Housing Finance invoked the shares pledged by DLF and Chinsha to recover its dues and subsequently assigned the debt to Omkara Asset Reconstruction Company. The invocation of shares effectively wiped out DLF's equity in the project, prompting DLF to allege wrongful ouster and violation of shareholder rights, which triggered years of arbitration, NCLT hearings, and RERA-related complaints.
While Chinsha eventually accepted its exit and withdrew objections, DLF fought on, at one point even offering Rs 1,450 crore for the entire joint venture shareholding of Chinsha and Hubtown, an offer that reportedly went unanswered before the loan was assigned to Omkara ARC. The latest settlement now sees DLF relinquishing its 37.5% stake in the SPV entirely, drawing a final line under the conflict.
For Hubtown, the resolution is a major unlock. With DLF and Chinsha out, Hubtown gains full control of the project, which already has three towers registered with RERA and fresh funding secured from Oaktree Capital to push construction forward. Real estate experts say the resolution marks a shift in the sector, where structured settlements backed by real assets are increasingly being chosen over lengthy court battles. This mirrors a broader trend of stressed redevelopment projects across Mumbai being revived through asset-backed settlements and alternative funding rather than prolonged litigation.
For DLF, the Tulsiwadi exit is consistent with its long-standing strategy of unlocking capital from stalled or non-core legacy holdings while it doubles down on its home market. The company has been redeploying capital into fresh Mumbai bets instead, including its ultra-luxury Westpark project in Andheri West, marking DLF's return to active residential development in the city after exiting a decade ago. For homebuyers and investors tracking the Tardeo micro-market, the settlement is good news: with litigation cleared, Hubtown can now move ahead with construction, bringing one of South Mumbai's largest stalled slum-rehabilitation redevelopments closer to delivery.
