Legend 96 Sri Lanka project: subsidiary withdraws as Joint Developer, seeks termination

The company's Sri Lanka subsidiary is withdrawing as Joint Developer of the Legend 96 residential project and seeks termination of the Development and Financing Agreement, along with settlement of amounts payable.

Wed 7 Oct 2026

Termination letter date

7th October 2026

Development and Financing Agreement date

28th January 2025

Stated impact

not expected to have any material adverse impact on the ongoing operations

What has been announced

• RPP Infra Projects (Lanka) Limited, a subsidiary, was to participate as Joint Developer and Wills Realtors (Private) Limited as Primary Developer of the proposed "Legend 96" residential project in Sri Lanka.
• The subsidiary has decided to withdraw from and discontinue its participation as Joint Developer, and has communicated this to Wills Realtors vide letter dated 7th October 2026, seeking termination of the Development and Financing Agreement and settlement of the amounts payable between the parties.

Why the company is exiting

• The project experienced delays, primarily on account of the time required for obtaining the necessary regulatory, statutory and building approvals in Sri Lanka.
• Arranging project financing through Indian banks proved challenging in view of prevailing conditions in Sri Lanka, necessitating exploration of alternative local financing arrangements.
• For such local financing, it was contemplated that the project land would be offered as security/mortgage, but the Primary Developer was not willing to provide the project land as security.
• A proposal was also made to alter/dilute the revenue-sharing arrangement agreed under the agreement, in the event the land was offered as security.
• After considering these circumstances, the company determined that continuation of its participation in the project was not commercially and financially feasible.

Money already spent

• The company incurred certain expenditure in connection with the initial stages of the project, including expenditure towards assignment fees and other consideration relating to assignment/development rights.
• The company is in the process of recovering such amounts from Wills Realtors, and the parties propose to discuss and mutually agree upon the manner of settlement.

Agreement timeline

• The in-principle agreement with Wills Realtors was intimated to the exchanges by letter dated 4th December 2024.
• The Development and Financing Agreement was entered on 28th January 2025.
• The date of termination/amendment stated is 7th October 2026.

Stated impact

• The withdrawal from the project is not expected to have any material adverse impact on the ongoing operations of the company.

Points an investor can track

• The settlement with Wills Realtors and recovery of the expenditure already incurred on the project's initial stages.
• How the company deploys its resources now that this joint development role is being given up.

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