‘Godrej & Boyce to keep land as transfer may attract huge stamp duty'

Godrej & Boyce Manufacturing Company (G&B) will continue to retain around 3,401 acres of its land even as a division in the family business is expected soon.

- Namrata Singh & Nauzer K Bharucha

Mumbai:

TOI has learned that senior directors across group companies have been sworn to secrecy not to talk about the negotiations. Besides, there is an embargo on them not to sell or trade in Godrej stocks till then. An insider, when contacted by this newspaper, said it makes sense for G&B to retain the entire land.

“While the probability of apportioning the land through a separate vehicle was discussed, it was difficult to execute it as it would attract a huge stamp duty payment based on the ready reckoner value of the land,” said the source, adding, “The 5% stamp duty would kick in even if the land were to be transferred from one group company to another.”

The decision to vest the land in G&B will, in turn, boost the valuations of the company, said sources. It could make the family business separation an expensive proposition for Jamshyd Godrej’s side. Turnover wise, the unlisted G&B (Rs 11,400 crore in 2019-20) is half the size of Godrej Industries & associate companies (around Rs 21,000 crore).