Navi Mumbai Township Project to be Funded by Bahrain Bank
Navi Mumbai Township Project to be Funded by Bahrain Bank. Khaleeji Commercial Bank, Bahraini bank is funding for a mega township project near the upcoming international airport in Navi Mumbai. Aaron Solomon, the managing partner at Solomon & Co, advising the bank in its funding of a Rs500 billion (US$7 billion) township project said that they had to work within the Shariah law framework to meet the bank’s requirements. As this was one of the bank’s prerequisites. The township will see the development of 422 acres of land, which will include residential units, commercial units and approximately 200,000 affordable housing units along with social and entertainment infrastructure.
Bhumiraj Group jointly undertakes the project, Valuable Group and the special purpose vehicle of Khaleeji Commercial Bank, will be developed in phases over a 10-12 years period. Valuable Group is also investing in the project. One of the key challenges associated with the deal was to ensure that the documentation was compliant with Shariah law. Hence, Solomon & Co advised on the verification of the title and issuance of title due diligence, and the drafting of the development agreement with Bhumiraj City and Valuable Group.
It also guided the bank on compliance with the Real Estate (Regulation and Development) Act, 2016, the waterfall mechanism relating to the distribution of sale proceeds, area sharing, direct and indirect tax implications including goods and services tax, along with strategic advice on structuring the transaction and repatriation of foreign direct investment (FDI) in India’s real estate sector, obtaining permission and approval for the purchase and conversion of agricultural land from villagers in Maharashtra.