After years of courtroom battles, DLF and Hubtown have finally called a truce over one of South Mumbai's most-watched redevelopment stories. Developers Hubtown and DLF reached a settlement in their long-running legal dispute over the Tulsiwadi urban renewal project in South Mumbai, a Rs 10,000-crore project spread across 17 acres adjacent to the Willingdon Club in Tardeo. For homebuyers who have been tracking this prime Tardeo address for years, the news signals that construction can finally gather pace after a prolonged standstill.
Under the terms of the settlement, Twenty-Five Downtown, backed by Hubtown, will pay DLF a total of Rs 800 crore over two years, with the first instalment of Rs 100 crore already paid. To guarantee the remaining payout, Hubtown has mortgaged 1.5 lakh square feet of saleable area in the upcoming development in favour of DLF, with the mortgage documentation formally registered. As part of the deal, DLF has formally exited the project and withdrawn all ongoing legal proceedings against Hubtown, Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance, and other associated parties, bringing closure to prolonged arbitration, National Company Law Tribunal (NCLT) hearings, and RERA-related complaints.
The roots of this dispute go back several years. The background of the dispute dates back to 2021, when the project ran into difficulties after defaulting on a Rs 900-crore loan from PNB Housing Finance, and the loan became non-performing, prompting the invocation and sale of pledged shares held by DLF and its former partner, Chinsha Property, a subsidiary of the Shapoorji Pallonji Group. These shares were later acquired by Omkara Asset Reconstruction Company. While Chinsha opted to exit the project and withdrew its objections, DLF contested the share transfer, alleging infringement of shareholder rights, which led to litigation across multiple forums. DLF alleged wrongful ouster and violation of shareholder rights, leading to prolonged litigation in the Bombay High Court and NCLT against Hubtown and the lenders.
With this chapter closed, the latest settlement now sees DLF relinquishing its 37.5 per cent stake in the special purpose vehicle that originally held equal 37.5 percent shares each for DLF and Chinsha, alongside Hubtown's 25 percent stake. With DLF and Chinsha out, Hubtown gains full control of the project, which industry watchers say is now positioned for faster execution. The project isn't starting from scratch either — the project, near Willingdon Club in Tardeo, has three towers registered with RERA and fresh funding secured from Oaktree Capital.
For homebuyers eyeing South Mumbai, this development matters because it removes one of the biggest overhangs on a marquee land parcel. 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 is particularly relevant in a city like Mumbai, where litigation has historically stalled several large slum redevelopment schemes for years, locking up prime land and delaying much-needed housing supply.
With litigation now behind it, Hubtown is expected to push ahead with the Tulsiwadi redevelopment, one of South Mumbai's largest slum cluster projects. The 17-acre parcel sits in one of the city's most sought-after micro-markets, adjoining the Willingdon Club and within easy reach of Worli, Mahalaxmi, and Nariman Point — a location that has long made this project one of the most closely watched urban renewal stories in Mumbai real estate.
While DLF has formally exited Tulsiwadi, the settlement is also a reminder of the developer's broader strategy of entering high-value markets through structured joint ventures and, when required, exiting cleanly on commercial terms. DLF's current Mumbai focus has shifted to its Andheri West project, The Westpark, developed with Trident Realty, even as its flagship growth engine remains the Privana township and The Dahlias in Gurugram. For homebuyers, the Tulsiwadi resolution is a useful case study in how legacy land disputes in Mumbai's redevelopment ecosystem are gradually being untangled, often paving the way for renewed construction activity and eventual project launches.
