More than 600 Homebuyers in Greater Noida West Project to Receive Flats Through Reverse Insolvency Process

2024-12-28 04:17:30

Over 600 Homebuyers to Receive Flats in Greater Noida West Through Reverse Insolvency Resolution

The RG Luxury Homes project has reached a significant milestone by obtaining the Occupancy Certificate (OC) for towers D, E, and F. This follows the OC granted last year for four towers—A, B, C, and M—comprising 850 units.

The Greater Noida Industrial Development Authority (GNIDA) has facilitated the registration of flats for over 600 buyers by granting the OC to a stalled project that had been impacted by a financial crunch.

RG Luxury Homes was revived under the supervision of an Interim Resolution Professional (IRP) through a reverse insolvency resolution process approved by the National Company Law Tribunal (NCLT). According to officials, this is the first project in Gautam Budh Nagar, Uttar Pradesh, to be completed and granted an OC through reverse insolvency.

Understanding Reverse Insolvency

Reverse insolvency is a provision within the Insolvency and Bankruptcy Code (IBC) that allows corporate debtors to initiate their own resolution process. This mechanism is designed to revive distressed projects or companies facing insolvency. Under this process, promoters act as lenders by infusing funds to complete stalled projects.

Benefits for Homebuyers

Officials have confirmed that this process will benefit over 600 homebuyers by enabling them to take possession of their flats with ownership rights. RG Luxury Homes, located on an 18-acre site in Sector 16B, Greater Noida West, was launched in 2010 with an original completion deadline of 2014. However, construction halted in 2016 due to financial issues.

In 2019, a group of homebuyers representing 1,918 units in the first phase approached the NCLT for relief. An IRP was appointed in July 2021 to oversee the project’s revival.

Project Revival Efforts

Under the IRP’s supervision, the promoters demonstrated their commitment to completing the project by submitting a revival plan with clear financial and time-bound targets. This plan was endorsed by stakeholders, including financial institutions, GNIDA, and the IRP. Construction resumed in October 2021.

The recent OC covers 600 units in towers D, E, and F, while the previous OC accounted for 850 units in towers A, B, C, and M. In total, OCs have now been obtained for seven towers comprising 1,450 units.

Looking Ahead

Himanshu Garg, Director of RG Group, called the OC for three additional towers a major achievement for the company.

“With OCs for seven towers, we’ve reached an important milestone. This demonstrates our commitment to completing the project. The remaining 460 units of Phase 1 will be delivered soon,” Garg said.

Manoj Kulshrestha, the NCLT-appointed IRP, highlighted the challenges of completing the project within the planned framework.

“Given the current scenario of real estate projects entering NCLT and facing lengthy resolution processes, completing this project was a formidable task. The promoters sold assets, collaborated with financial institutions, and retained customer trust to meet the objectives,” Kulshrestha added.

This accomplishment serves as a model for reviving stalled real estate projects and restoring faith among homebuyers and stakeholders.