NCLT dismisses plea to conclude HDIL Mumbai project’s transfer

MUMBAI: The National Company Law Tribunal’s (NCLT) Mumbai bench has dismissed an utility searching for to conclude the transfer settlement of a venture by beleaguered developer Housing Development & Infrastructure Ltd ().

HDIL had executed an settlement to transfer the venture, HDIL Majestic Tower, in Mumbai’s Nahur suburb earlier than the initiation of Corporate Insolvency Resolution Process (CIRP) towards it. This was completed after taking approval of Suraksha Asset Reconstruction, which was the unique cost holder of the venture.

Around 400 homebuyers and Suraksha ARC had filed an utility earlier than the NCLT searching for instructions to conclude the transfer, as that may enable them to increase working capital to full the venture.

Bank of India, one among HDIL’s lenders, had opposed the appliance.

Dismissing the plea, the NCLT bench stated carving out the venture would profit just one lender and drawback the opposite collectors.

Suraksha ARC, the unique lender to the venture, and the homebuyers are planning to enchantment the order earlier than an acceptable discussion board.

HDIL had aggregated varied land parcels of about 8.32 acres until 2008 and submitted a rehabilitation venture proposal to the Slum Rehabilitation Authority (SRA), which was permitted in October 2009.

As per the deed, SRA appointed HDIL because the developer to assemble 4 rehabilitation buildings and one sale constructing with 4 wings beneath the slum rehabilitation scheme.

In March 2011, HDIL Majestic Tower was launched with a completion timeline by December 2013. The plan was to assemble 1,000 flats, of which round 400 have been offered until 2017. The developer couldn’t full the venture inside the set timeline; homebuyers had paid round Rs 220 crore out of Rs 330 crore payable as per the person sale agreements.

Through a revival plan in June 2019, HDIL instructed that the venture could possibly be accomplished by transferring it, together with sure liabilities, to its wholly owned subsidiary, Mazda Estate.

Suraksha ARC and the developer’s board permitted the plan in August 2019.

However, HDIL was later admitted into the CIRP and the closure formalities of this transaction remained pending.

HDIL went into insolvency when NCLT admitted a petition by Bank of India to get well dues price Rs 522 crore.

Nishit Dhruva, managing accomplice of regulation agency MDP & Partners, together with Rohan Agarwal represented Bank of India, whereas homebuyers have been represented by Rohit Gupta and senior counsel Venkatesh Dhond argued for Suraksha ARC.