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Alpha Corp to invest ₹750 cr to revive stalled projects in Greater Noida and Gurugram, bring relief to 3,000 homebuyers
The resolution follows a Supreme Court judgment supporting the developer-led resolution framework under the Insolvency and Bankruptcy Code
In a move expected to bring relief to nearly 3,000 homebuyers affected by decade-long delays, real estate firm Alpha Corp Development Ltd said it will invest around ₹750 crore over the next four years to complete three stalled housing and commercial projects in Greater Noida and Gurugram.
The development follows a Supreme Court ruling that set aside an order of the National Company Law Appellate Tribunal (NCLAT), which had earlier rejected Alpha Corp’s resolution plan to acquire three projects of the erstwhile Earth Infrastructure Ltd. Upholding the company’s revival plan under the Insolvency and Bankruptcy Code (IBC), the apex court cleared the way for the completion of the projects, which have remained delayed since 2011.
The Gurugram housing project comprises 600 units, of which 450 have already been sold, while the two commercial projects together have a saleable area of about 40 lakh sq ft. Alpha Corp Development Ltd had acquired these stalled assets of Earth Infrastructures Ltd through the resolution process under the National Company Law Tribunal.
“Alpha Corp Development is expected to invest approximately ₹750 crore towards completion, redevelopment, infrastructure upgrades, and delivery of the projects, with a projected revenue potential of around ₹1,200 crore from them. This potential includes collections of funds from customers and realisation from unsold units,” Santosh Agarwal, the company's Executive Director and CFO, told reporters in the capital.
The Supreme Court of India on May 5 restored Alpha Corp’s resolution plan, setting aside the January 31, 2023 order of the National Company Law Appellate Tribunal that had earlier rejected it.
The judgment is viewed as a historic win for the developer-led resolution framework under the Insolvency and Bankruptcy Code (IBC), while simultaneously safeguarding the interests of thousands of affected buyers awaiting completion and possession for over a decade, the company said.
The Supreme Court upheld the IBC's revival framework and cleared the path for completion of stalled projects, observing that any further delay would seriously prejudice homebuyers and commercial-space buyers who had invested substantial amounts in the developments, it said.
Also Read: Insolvency and Bankruptcy Board of India panel recommends project-wise insolvency resolution for real estate cases
The Court also directed that the Greater Noida Industrial Development Authority (GNIDA) would be entitled to recover only its principal dues, while waiving penal interest, penal charges, and time-extension penalties. It further mandated that Alpha will clear these dues over 24 months, with no financial burden passed on to homebuyers, the company said.
The projects include two commercial developments in Greater Noida, ‘Earth TechOne’ and ‘Earth Sapphire Court’, and one residential project in Gurgaon, ‘Earth Copia’. These projects were launched more than a decade ago.
"The Supreme Court has upheld our resolution plans to revive these three projects," Agarwal said.
Also Read: NCLAT allows withdrawal of insolvency against Mahagun after settlement
"The restoration of the Resolution Plan marks an important and positive step towards the resolution of these long-stalled projects. This historic judgment reinforces confidence in the insolvency resolution framework and paves the way for the timely revival of stressed real estate assets," Agarwal said.
“At Alpha Corp, our focus remains on transparent execution, timely completion, and restoring the trust of over 3,000 homebuyers and office-space buyers who have waited several years for delivery,” he said.
Sandeep Bhuraria, Senior Partner, Zeus Law Associates, assisted by Vatsala Pandey, Associate, who represented Alpha Corp in the matter, said, “This judgment by the Supreme Court is a significant step towards resolving long-stalled projects and will provide much-needed relief to homebuyers and allottees. It also sets an important precedent for the resolution of stressed real estate assets across NCR.”
Backstory of the projects
The projects had remained stalled for several years following financial distress faced by the erstwhile developer, significantly impacting buyers across NCR. Through the resolution process, Alpha Corp Development will now oversee project execution, construction management, regulatory coordination, customer engagement, and phased delivery, the company said in a statement.
As part of the revival approach, the company is evaluating redevelopment and upgradation measures, including infrastructure improvements, amenity enhancements, and design modernisation to align the projects with current market expectations, it said.
Detailed execution schedules, customer engagement mechanisms, and phased completion timelines are expected to be communicated progressively as regulatory and operational alignment progresses, it said.
