DBS Realty, a partnership firm in which DB Realty, has one-third stake, received a Letter of Acceptance (LoA) from the Municipal Corporation of Greater Mumbai (MCGM) for building a tenement in Chandivali, Mumbai.

The project entails construction, completion and handing over of 4,000 tenements of carpet area size 27.88 mts along with transfer of land and completed tenements to MCGM.

The firm shall receive land transferable development rights (TDR) and construction TDR of 1.56 million sq ft and premium per tenement at ₹39.60 lakh aggregating to ₹1,584 crore. This shall be paid by the MCGM in the form of credit note subject to certain terms and conditions as prescribed in LoA.

The construction TDR and credit note will be released by MCGM on milestones basis as per the e-tender. “This is a unique project which is expected to benefit from tax exemptions under the Income Tax Act, 1961,” DB Realty said in a statement.

In addition, the company has also bid for construction of another 10,500 tenements at Malad for the MCGM.