The Hindu Business Line : RIL pips Anil Ambani group for Bandra-Kurla property

THE successful bid by Reliance Industries Ltd at Rs 1,104 crore for the 7.5 hectare plot in the Bandra Kurla Complex (BKC) on Tuesday was also the first instance of a breach of the so-called `non-compete clause' between the two brothers.

Among the other bidders for the plot was Reliance Communications and Infrastructure Ltd, an Anil Dhirubhai Ambani group enterprise, whose bid fell short at Rs 1,011.12 crore.

As per the ownership settlement plan, there was a five-year non compete clause in existence between the two Ambani brothers. However, sources familiar with the development said neither faction knew of the other's participation and to that extent it was an inadvertent development.

The fate of the two Ambani factions seems inextricably entwined even after parting ways. The present round of bidding was based on the premise that BKC would become an international business hub once it gets metro rail/ sky bus connectivity. Interestingly one of the competitors to build Mumbai's Metro Rail is Reliance Energy Ltd.

The current round of bidding comes after five unsuccessful previous attempts to sell off the plot, with Rs 130 crore as the price fixed for the convention centre. RIL, which must make the payment over the next three months, paid a whopping Rs 18,104 per sq ft against the prevailing rate of Rs 10,000-12,000 per sq ft in Nariman Point, the city business centre.

Dr T. Chandrasekhar, Joint Commissioner, Mumbai Metropolitan Region Development Authority (MMRDA), told Business Line that the pricing was right given the place's scope to become an international business hub once connectivity issues were resolved.

"RIL has three years' time to complete the project. It is free to go in for any type of commercial activity, including a five-star hotel over and above the convention centre," he said.

Informed sources in MMRDA said the authority may put fresh plots up for bidding but no final decision had been taken. However none of these plots were as large as the 7.5-hectare plot that went under the hammer to RIL.