BENGALURU/MUMBAI: A Bengaluru court has restrained construction giant Shapoorji Pallonji & Co (SPCL) from modifying, alienating, pledging and creating lien on its shares as well as those held by its subsidiary companies. The order was passed in connection with a case filed by real estate company Embassy One Developers against SPCL, alleging the Mumbai-based major dishonoured a contract for construction of a hotel-cum-retail project in the garden city of India.
The city civil court's interim order restrains SPCL from creating third-party rights on its shares till arbitration proceedings are completed.
Embassy One (formerly Cityview Bangalore Properties) is claiming Rs 780 crore as damages from SPCL. The project, named CityView, is coming up on a 6.5-acre piece of land that the Embassy Group acquired last year from Goldman Sachs and Century
Real Estate Holdings in a deal valued at Rs 1,000 crore. Global private equity major Blackstone is partnering Embassy Group in the project.
An SPCL spokesperson said the company is yet to receive the court order. We are also surprised and shocked with the order which has been obtained ex parte, without any intim ation to us to represent our case.This is very disappointing, particularly when the dispute has been referred for arbitration.We have taken a serious note of the same and will place the facts before the honourable court," the spokesperson said.
Last year, SPCL had threatened to take legal action against Goldman Sachs and Century Real Estate Holdings, both of whom were jointly developing the hotel, which is part of the CityView project.Four Seasons chain will operate the hotel.