Mumbai: Controlled Godrej & Boyce Manufacturing Companies (G & B) will continue to maintain around 3,401 hectares of land they have, even as divisions in the family business expected to conclude immediately.
The Godrej family is identical to land ownership and what maintenance is the largest managed mangrove belt in the city.
Of the 3,401 hectares located on the eastern outskirts of Mumbai, about 1,750 hectares of mangroves are part of the Pirojsha Godrej Soatabai Foundation.
A few years ago, when the separation talks began between the two families – Adi Godrej, Nadir Godrej and Family (Godrej Industries and Associates) and Jamshyd Godrej and a large family – Real Estate was the literal point about the method of assets would be divided.
The source close to the family told Tii has been decided that the G & B that has real estate will maintain it too.
Toi has learned that senior directors throughout the group company have been sworn to be married not to talk about negotiations.
In addition, there was an embargo on them not to sell or trade in Godrej shares until then.
The insider, when contacted by this newspaper, said it made sense for the G & B to maintain the entire land.
“While the probability of distributing land through separate vehicles is discussed, it is difficult to execute because it will attract large stamp duty payments based on the value of Ready Reckoner,” the source said.
“The 5% stamp duty will kick even if the land is transferred from a group company to another,” said the source.
The decision for land vests in the G & B in turn will increase the company’s assessment, the source said.
It can make family business separating expensive propositions for the Jamshyd Godrej side.
Wise replacement, not registered G & B (RS 11,400 Crore in 2019-20) is half of the size of Godrej Industries & Associate Company (around Rs 21,000 Crore).
It is not clear whether Godrej Properties, which is part of Godrej Industries and associated companies, will continue to benefit by developing the properties of the land owned by G & B, following family separation.
More than and above the land of 3,401 acres belonging to G & B, there are separate land parcels where Godrej Group is in a dispute with the state government since 1973 for whom it controls the land.
The state claims its land and has filed a lawsuit against the G & B that year.
The dispute was waiting before the Bombay High Court.
Responding to TI’s request about this problem, the Godrej family said in a joint statement: “The Godrej family has worked on a long-term strategic plan for the group for the past few years to ensure the value of its shares.
As part of this exercise, we also seek advice from external partners.
This discussion between family remains sustainable.
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