DLF, the country’s largest real estate company, has dropped its plans to set up an IT Special Economic Zone (SEZ) in New Delhi. The company, which cited the global slowdown as the reason behind the move, will, instead, utilise about 25 acres purchased from Sriram Industries three years ago for residential projects.

The plot, close to Swatantra Bharat Mill, had an in-principle approval from the government to develop an IT-SEZ. The company has now applied for a formal withdrawal of the in-principle approval, sources added. The request for de-notification has come on the back of falling demand for commercial office space, and also keeping in view the current international environment.

Last year, DLF had, in one of the costliest land deals in the city, acquired 37 acres close to the proposed IT-SEZ land for Rs 1,675 crore. The idea was to develop the entire space as an integrated township, including an IT hub.

Company sources said that all other DLF SEZ projects are on track. No construction had started on the particular land, thereby enabling them to apply for de-recognition of its SEZ status.

DLF is the largest commercial real estate player with around 38 million sq ft of ongoing projects and a total development potential of 164 million sq ft.