In a strategic breakthrough for its eastern India operations, Shriram Properties Limited has resolved a long-pending commercial dispute with the Government of West Bengal, clearing a key overhang that had constrained its development roadmap in Kolkata.
Through its subsidiary, Bengal Shriram Hitech City Private Limited, the company has conveyed 42.37 acres of land at Uttarpara, formally closing the matter and relieving itself of associated obligations. The settlement provides operational clarity and enables the Bengaluru-headquartered developer to recalibrate its growth strategy around a substantial 314-acre land holding in the Kolkata metropolitan region. The Uttarpara land bank has long been one of SPL’s most significant eastern assets. Of the total parcel, nearly 48 acres have already been developed, delivering approximately 5 million sq ft across multiple residential projects, with around 80% of the inventory reportedly sold. The strong absorption underlines sustained end-user demand in the corridor despite broader cyclical volatility in eastern housing markets. With the dispute now behind it, SPL plans to deploy a dual strategy: self-development of select parcels alongside phased monetisation of surplus land and additional floor space index (FSI). The company has outlined a pipeline of 5–6 million sq ft over the next five years, translating into an estimated gross development value (GDV) of about Rs 3,000 crore. Incremental upside is expected from strategic land monetisation, which could improve capital efficiency and balance sheet flexibility.
Market analysts view the move as balance-sheet positive. Long-drawn land disputes often constrain capital recycling in real estate, limiting developers’ ability to leverage large land banks. By resolving the issue amicably with the state government, SPL reduces regulatory uncertainty and strengthens its execution visibility in a market that has historically been land-sensitive. The Uttarpara micro-market continues to benefit from improved connectivity and infrastructure-led demand triggers across the Hooghly belt, positioning it as a relatively affordable yet growth-oriented residential corridor within the Kolkata metropolitan region. For SPL, the resolution also aligns with its broader national strategy of focusing on mid-market and value-premium housing across southern and eastern India, while monetising non-core land to fund fresh launches. Chief Executive Officer Gopalakrishnan J described the settlement as a turning point that enhances the company’s ability to accelerate development and unlock meaningful value in the coming years.
As eastern India’s residential cycle shows gradual recovery, the dispute resolution offers Shriram Properties both strategic clarity and financial optionality critical levers for sustained expansion in a capital-intensive sector.
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Shriram Properties clears Bengal land hurdle
