Monday, December 10, 2007

Pantaloon drags DLF to court

Pantaloon Retail has taken one of the country`s largest developers DLF Retail to court, reports Economic Times.

On Friday (December 7), the retailer successfully filed for an injunction in the Delhi High Court against DLF prohibiting it from granting possession of 110,000 sq ft of space to any third party at its South Point Mall in Gurgaon that was supposed to be leased to Pantaloon Retail.

Pantaloon and DLF had signed an agreement three years ago for 110,000 sq ft in the mall when it would be ready. However, in the interim, real estate prices shot through the roof. Thus, DLF chose not to allow the retailer to go ahead with fit-outs. A further hearing is scheduled for January 30.

For DLF, the potential loss in income from real estate rentals may have been significant. DLF`s South Point Mall in Phase V, Gurgaon is expected to be about 300,000 sq ft overall, with Pantaloon occupying more than one-third of the area. Pantaloon Retail had plans to set up Home Town and Food Bazaar, besides a few of its other smaller formats.

Shares of the company were last trading up Rs 7.75, or 0.77%, at Rs 1,019.1. The total volume of shares traded at the BSE was 344,654.(12.48 p.m ,Monday ).

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