NCLT Approves Selective Capital Reduction Of Godrej Redevelopers; 26,506 Shares To Be Cancelled

On August 25, 2026, the National Company Law Tribunal (NCLT) approved the selective reduction of Godrej Redevelopers' (Mumbai) Private Limited's equity share capital. This decision allowed for the cancellation and extinguishment of 26,506 fully paid-up equity shares held by Shubh Properties Cooperatief U.A., without any consideration.

The order was passed by a Bench consisting of Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey. The cancelled shares made up 47.32% of the company's shareholding. Shubh Properties had given its consent to the reduction through a letter dated April 1, 2026, and the company submitted an apostilled copy to the Tribunal.

The company assured the Tribunal that the reduction would not involve any cash payment to shareholders or compromise with creditors, and that creditors' rights and statutory dues would not be affected. The NCLT examined the company's responses to regulatory concerns, including creditor protection, tax implications, beneficial ownership disclosures, and potential Real Estate Regulatory Authority (RERA) implications.

After reviewing the petition, regulatory reports, and the company's answers, the NCLT concluded that the company had adequately addressed the requirements of Section 66 of the Companies Act and relevant NCLT Rules. The Bench determined that the proposed reduction was fair and reasonable, and would not harm creditors, shareholders, stakeholders, or government revenue.

The Tribunal also noted that the company's commitment to comply with MahaRERA and other relevant RERA regulations in its real estate projects was sufficient.