Runwal flags land-title defects and a terminated SRA role

Runwal has disclosed distinct land and approval risks across several projects: documentation defects at 7 Mahalaxmi, a conditional 178-acre acquisition at Mithagar in Murud, a reported probe involving approximately 59.43 acres linked to Runwal My City, and termination of a Bandra slum-redevelopment developer appointment on August 25, 2026.

What land-title defects has Runwal identified?

Runwal says 7 Mahalaxmi has deficiencies involving non-registration and non-payment of adequate stamp duty on certain supplementary agreements as of the red herring prospectus date. Stamp duty is a tax on specified legal instruments, while registration records an instrument under the applicable process. The company says either deficiency can complicate the documentation supporting land rights and development.

Runwal also disclosed issues affecting 7 Mahalaxmi and other projects, including objections to public notices during court proceedings, transfers without consent from competent authorities, reservations, subsisting mortgages over Runwal entities’ property entitlements, property-tax payments and pending updates to revenue or city-survey records. It did not quantify the area or financial value affected. Runwal says such matters may delay title transfers, trigger disputes, affect land valuations, disrupt development and potentially require related expenses to be written off.

Runwal says conditions under development agreements for Runwal Lakeview, 7 Mahalaxmi and Runwal Woods remained incomplete as of the prospectus date. The company states that it or its subsidiaries have clear title to land they own, except the 178-acre Mithagar parcel, but development rights can remain subject to contractual conditions, government consents and record updates. The identified risks would remain until the relevant conditions, registrations, stamp-duty matters and other issues are resolved.

Why is Runwal's 178-acre Murud acquisition conditional?

Runwal's proposed acquisition of 178 acres at Village Mithagar, Taluka Murud, District Raigad is conditional because Evie Constructions Private Limited has a right to buy the land under registered agreements for sale rather than completed ownership. Runwal says the purchase will be completed only after the identified issues and infirmities are resolved under those agreements.

The company says the current landowners are in breach of applicable ceiling regulations and, despite being non-agriculturalists, hold agricultural land without prior permission from relevant revenue authorities. Land-ceiling regulations can limit permissible holdings, while the second issue concerns the regulatory permission required to hold agricultural land. The prospectus does not state that either matter has been cleared, waived or otherwise resolved.

Runwal says public notices for the 178-acre Murud land were issued on January 9, 2025, but claims may arise for the period after that date. Public notice is part of title diligence, yet the company says independent title reports may not reveal all risks, including unregistered encumbrances and adverse-possession rights. Runwal has no title insurance for any project and says title insurance has limited availability and uptake in India; it also warns that it may forfeit advances if a purchase agreement cannot be completed.

What does the reported grazing-land probe mean for Runwal My City?

Runwal says it understands from media reports that approximately 59.43 acres owned by Horizon Projects Private Limited are reportedly under investigation in connection with a probe involving 174 acres of government-owned cattle grazing land in Kalyan Taluka, Thane District. The reported probe concerns allegations that land was improperly covered, split and monetised as premium commercial real estate in violation of original land-use rules.

Runwal says it has received no notice or formal communication regarding the reported investigation. It also says it cannot assure that an investigation will materialise or that an adverse decision, if issued, would not affect Runwal My City, business operations, cash flows, financial condition or results. The disclosure does not establish a finding against Horizon Projects Private Limited; it identifies uncertainty over possible regulatory action and its outcome.

The approximately 59.43 acres represent about 34% of the 174 acres cited in the reported wider probe. That calculation compares the area owned by Horizon Projects Private Limited with the area described in the media reports, and does not establish that the subsidiary's land was improperly converted or forms a legally determined part of the government-owned land.

Why was the Bandra SRA developer appointment terminated?

Runwal says the developer appointment for a Bandra (West) slum rehabilitation scheme involving its subsidiary was terminated on August 25, 2026. Its subsidiary RCPPL had executed a definitive document dated November 26, 2024 with Grage MSK Realtors of India for the redevelopment project. The Chief Executive Officer of the Slum Rehabilitation Authority, Brihanmumbai, or SRA, terminated the appointment of the Grage MSK Realtors of India joint venture together with RCPPL as developers.

The order was passed under Section 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. Runwal does not state the grounds for the order, its financial effect, or whether the scheme could be restored, retendered or transferred to another developer. It says it is evaluating and determining the appropriate course of action, leaving the future of the proposed redevelopment unresolved as of the prospectus date.

How could these land and approval risks affect project execution?

Runwal says unresolved title defects, legal disputes, failure to acquire parcels, missed contractual or payment obligations and regulatory restrictions may affect its ability to market and develop projects. The mechanisms it identifies include project delays, impaired land valuation, third-party claims, forfeiture of acquisition advances and write-offs of related expenditure. These outcomes depend on the individual facts and decisions affecting the 178-acre Murud parcel, Runwal My City, the Bandra scheme and other named developments.

Indian title records generally provide presumptive rather than guaranteed title, according to Runwal's disclosure. The company identifies fragmented ownership, improperly executed conveyances, unstamped or unregistered instruments, unregistered encumbrances, adverse-possession rights and claims by family members of prior owners as risks that may evade diligence. Runwal reported no instances in Fiscals 2026, 2025 or 2024 where it was unable to acquire land under purchase agreements or where those agreements were invalidated or expired, but says there can be no assurance this will not occur later.

Conclusion

Runwal's disclosures describe several separate legal and regulatory risks rather than one confirmed adverse outcome. The 7 Mahalaxmi documentation issues, incomplete conditions at Runwal Lakeview and Runwal Woods, the conditional 178-acre Murud acquisition, the reported 59.43-acre matter and the August 25, 2026 Bandra termination each concern different land rights, counterparties or authorities.

The next stated developments are resolution of the Murud issues before Evie Constructions Private Limited completes the purchase, any formal communication or decision concerning the reported Kalyan Taluka probe, and Runwal's determination of its response to the SRA order. Completion of the outstanding development-agreement conditions at Runwal Lakeview, 7 Mahalaxmi and Runwal Woods would also address matters identified as pending in the prospectus.