This is a whopping 160 times hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.

Fortunes of real estate companies in India’s financial capital could take a turn for the worse if the Maharashtra government accepts the proposal to hike stamp duty on leave-licenses.

The government’s aim behind this move is to mobilize over Rs 1,000 crore and restore Mumbai to its previous glory.

Most realtors had stomached the 2% service tax hike (from 10% to 12%) announced in Budget 2012-13 and instead opted to see the silver lining , which is the introduction of external commercial borrowings (ECBs) in the low-cost housing segment and the reduction of withholding tax on ECB interest from 20% to 5%.

However, if the hike comes into effect, it will increase prices of leave-and-licence properties, both residential and commercial, by a huge margin which in turn will deal a sharp blow to an already-sluggish Mumbai real estate demand. India Bulls, Oberoi, HDIL, Phoenix Mills, Bombay Dyeing and Raymond are among the realty companies that will bear the brunt of the proposed stamp-duty hike.

”We will commence construction of a high-rise tower in two months. The entire project will be sold off in the next 24 months,” chairman Nusli Wadia told shareholders at the company’s AGM.

Although it would be difficult to fix a value for the upcoming project, real estate market sources said that the company could earn a few thousand crores. However, the value will depend on the state of the real estate market, which has shown signs of weakness of late.

“It’s anyone’s guess where the market is headed for in the next two years,” said a real estate analyst on condition of anonymity. Bombay Dyeing had started selling its Spring Mills project at Dadar in 2006 at an introductory price of Rs 10,200 per square feet, which zoomed to Rs 25,000 per square feet in January 2008.

The company is redeveloping its Spring Mills property in Central Mumbai into a residential tower, 84% of which has been sold. The work at Dadar and Worli is also under way, with two commercial and IT/ITeS towers expected to be ready by 2009-10. “This is 45% ready,” Mr Wadia said. “Instead of our earlier plans to lease out part of the property, we are now looking selling,” he added.

Bombay Dyeing, which suffered a Rs 48-crore loss for the quarter ended June 2008, is likely to take a hit in the second quarter too. “We expect a further loss due to production of polyester stable fibre, which started in October 2008. The second quarter is also expected to be the same (loss-incurring). We see positive results in the third quarter,” Mr Wadia said.

The company’s stock closed at Rs 564.6, up 4.91% in a buoyant BSE. The company, which recently entered Dubai, plans to invest in other overseas textiles retail market.

The Mahindra group’s real estate arm Mahindra City has roped in US-based architect and design firm HOK while Canadian firm Forrec, the lead architects behind Universal Studios, has tied up with Bombay Dyeing and Unitech. Lord Foster has tied up with the Neptune group to develop a 17-acre office complex called Evolution, near the Bandra-Kurla Complex (BKC). Neptune Group has reportedly paid Foster and Partner, Lord Foster ‘s firm $8 million for design alone.

“A city that works as hard as Mumbai deserves the best working environment possible. We will deliver a world class facility so far unmatched in the regions’ office property market,” Lord Foster was quoted as saying in a statement. Evaluation will be a low-rise structure, spread over 2 million square feet, easily accessible from the airport, three railway stations, two metro stations and two highways, with facilities like food court and health club.

Neptune group managing director Nayan Bheda said, “In each of our projects, we have tried to create a balance between little details and the big picture. We also believe that every piece of land has its unique potential. Fortunately, Lord Foster shares our vision and has agreed to come on board to unleash the potential.”

Similarly, the real estate and infrastructure development arm of the Mahindra Group, Mahindra Lifespaces has teamed up with US based HOK, one of the leaders in the global architecture and planning segment to develop the residential and social amenities zone at the Mahindra World City in Chennai.

HOK, which has developed landmark buildings including the Dubai Marina (the world’s largest planned waterfront community with a mix of residential, retail, hotel, office and recreational uses), is understood be working on other Mahindra projects as well, sources said.

HOK planning Group VP Jeff Davis said that the key challenge was to envision a master plan that would translate the vision of the Mahindra team while ensuring that it blended seamlessly with the natural surroundings. Forrec, the Canadian architectural firm, is a consultant to Unitech, DLF and Bombay Dyeing. Shapoorji Pallonji group has also teamed up with Craig Nealy for its joint venture projects in Pune.