Greater Noida: National Company Law Tribunal lets RG Group to finish project, first flats ready in 2.5 years
A group of buyers was able to take their case to the National Company Law Tribunal (NCLT) against the developer as they delayed handing out homes in RG Luxury Homes, where the work was stopped in 2016. The project has around 1700 home buyers.
NOIDA housing group project in Greater Noida west that went into bankruptcy in September 2019.
Saw the first apartments being handed out to potential buyers on Thursday.
That time buyers and operating creditors are more often going to bankruptcy court to stop real estate developments.
This is one of the few that have mapped out a route towards successful completion in a short period.
In February 2020, the National Company Law Appellate Tribunal directed the creation of a “reverse CIRP (corporate insolvency resolution process)”
And ordered the project’s creator to collaborate in conjunction with an Interim Resolution Expert (IRP) rather than hiring several companies.
National Company Law Tribunal lets RG Group to finish project
The National Company Law Appellate-appointed IRP was later fired. The brand-new IRP was appointed, and the project’s effort only began in July 2021.
On Thursday, the Interim Resolution Expert handed keys to 17 homebuyers to finish their home.
Promising that 800 purchasers would receive their apartments within three months.
According to the report, the remaining houses are expected to be handed over in March 2023 to homebuyers.
RG Group launched this project in the year 2010. This project was developed around 18.5 acres.
The project has 13 residential towers comprising 3 and 2 BHK flats.
In 2016, after construction was over, only the outer structures of the nine towers were completed as per homebuyers.
Umesh Narang, the treasurer for the Samiti, stated that the following years were a bad dream. Around 1,700 people had booked flats in the project and were paying EMIs also.
We protested outside the promoter’s office, RG Group, and raised our voices on every possible platform but did not get any change.
In 2019, more than 550 homebuyers formed RG Jan Kalyan Samiti to fight the case, and then we moved to NCLT.
On Thursday, Narang, who had booked 3-bedroom apartments in the project, was the first who was granted the key to his house. Narang was amazed by IRP Manoj Kulshrestha and said his job was absolutely “magic.”
Kulshrestha said that, in the present scenario of real estate projects going to the National Company Law Appellate Tribunal and prolonged resolution processes, the resolution of RG Luxury Homes was arduous.
The judiciary’s support through this order gave a phenomenal result.
A hybrid kind of order protected the project and restored the trust of homebuyers and other stakeholders.
First flats ready in 2.5 years
Developer said, “We held meetings with IIFL, bankers, India bulls, promoters, and homebuyers to discuss forward.
An initial loan of Rs 27 crore from IIFL (Rs 15 crore) and India bulls was used to start the project.
IIFL remained with us throughout the project and gave all the necessary support.
The developer sold some checklists and some of its assets to inject money into the project.
There were ups and downs, but we are going on the right track.
Group Director Himanshu Garg and RG Group said this is a critical moment and will open the door to an era of new solutions and new ways to start the project.
For other projects that are obstructing. We are grateful to the Indian judiciary for giving us the excellent opportunity to work on this project with the interests of our homebuyers.
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