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The 10-acre property belonging to HTL Ltd is set to be acquired by the Chennai-based VGN Developers for a little over Rs 270 crore, according to a reliable source.
The source associated with the deal, who spoke on condition of anonymity, said the deal is in the final stages. International property consultant Jones Lang LaSalle mediated the deal.
The property in Guindy, a prime area with commercial and residential development in south Chennai has been on the block for over six years now.
In March 2007, HTL was on the verge of selling 11 acres to the Bangalore-based RMZ for Rs 328 crore.
But the deal fell through when the State Government objected on legal grounds. It had originally allotted the land to Hindustan Teleprinters Ltd, a Central Government enterprise, in 1973.
HTL is a part of Himachal Futuristic Communications Ltd which acquired a 76 per cent stake in 2001 in the public sector enterprise.
The issue over the land sale was taken to court.
According to HTL sources, at that time, the company’s right to sell the property was upheld in the High Court and Supreme Court.
In 2009, the State Bank of India took possession of the land and put it back for sale under the Sarfaesi Act that allows banks to auction property to recover overdue loans.
VGN is now set to acquire the property, a second high profile purchase for the company which recently acquired a 1.5-acre property from Tata Telecommunications for Rs 195 crore in Nungambakkam in the heart of the city.
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