Intimation under Regulation 30 of the securities exchange Board of India (Listing Obligation and Disclosure Requirements) regulations 2015- Execution of Joint Development Agreement
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Balgopal Commercial Limited has entered into a Joint Development Agreement (JDA) with M/s. Viraj Enterprises (Juhu) for joint redevelopment of a real estate project in Juhu, Mumbai under the Slum Rehabilitation Authority (SRA) Scheme. The property spans approximately 1609.20 square meters. Balgopal holds an 85% share in the JV and will receive 85% of net sale proceeds, while also funding the entire project cost. The company has paid a refundable security deposit of ₹15 crores to the developer. Notably, this is a related party transaction as the Promoter & Managing Director of Balgopal is a partner in Viraj Enterprises; however, the company states it was done at arm's length with prior shareholder approval.
The deal signals Balgopal's expansion into real estate redevelopment with a partner holding a related party connection. While the project could generate long-term revenue, investors should monitor the ₹15 crore deposit and project funding requirements, as well as the related party nature of the transaction for any governance implications.