Tribunal nod for Purvanchal Group to take over Lotus Arena project
The resolution plan was necessitated after project developer, Arena Superstructures Private Limited, failed to complete and deliver the project on time
The National Company Law Tribunal (NCLT) on Wednesday approved the resolution plan of Purvanchal Projects Private Limited to take over Lotus Arena housing project in Noida’s Sector 79 and deliver flats to homebuyers.
The resolution plan was necessitated after project developer, Arena Superstructures Private Limited, failed to complete and deliver the project on time.
Dhankalash Distributors Private Limited, on October 29, 2020, under Section 7 of the Indian Bankruptcy Code, initiated corporate insolvency resolution process against Arena Superstructures Private Limited after it failed to clear dues.
There are a total of 1,080 flats in the project of which 858 have been sold in nine towers, which are partially constructed. The remaining units are unsold in this project, said officials.
Initially, Pawan Kumar Singal was appointed as the interim resolution professional (IRP) but he was later replaced by Ayyagari Viswanandha on June 9, 2021.
On November 4, 2020, the resolution professional invited claims from stakeholders, including homebuyers and banks. On December 2, 2020, the committee of creditors (CoC),comprising homebuyers, banks, contractors and others, was formed to decide on the company’s future.
As per the rules, on July 9, 2022, the CoC approved the resoultion plan submitted by Purvanchal group. The plan was submitted before the NCLT on July 16, 2022, and the NCLT approved the plan on Wednesday.
“Subject to the observations made in this order, the resolution plan of ₹584 crore is hereby approved. The resolution plan shall form part of this order,” said the order delivered by Ramalingam Sudhakar, president, NCLT, and Avinash K Srivastava, member, technical, adding that the resolution plan is binding on the corporate debtor and other stakeholders involved and shall come into force with immediate effect.
The Purvanchal group’s plan was finalised from among 17 proposals that came from different realty firms in Noida and Greater Noida, said officials.
Lotus Arena is spread on 12.5 acres along 29.7km Aqua Line of the Noida Metro and is a part of Noida’s Sports City project.
The developer had planned 1,080 units in this project but due to ”mismanagement, slow work, poor monitoring and slowdown in real estate sector”, the project got delayed by seven years. The homebuyers now hope that the new developer will deliver the project as per the timelines given in the resolution plan.
“We are happy that after so many years, the NCLT has finally approved the resolution plan of Purvanchal group. We hope that the new developer will complete the project on time. We have been suffering since the past 10 years or so,” said Vishwanath Sharma, president, Lotus Arena buyers association.
The new realtor, as per the resolution plan, has committed to complete the project in the next 36 months.
“We are known for fulfilling our commitments and delivering quality to our customers. We are happy that the NCLT, the CoC and the homebuyers have selected us from among 17 realty firms. We will complete the project as per the commitment made in the plan submitted and approved by the NCLT,” said Shah Alam, chairman and managing director, Purvanchal Projects Private Limited.