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Ambuja Neotia Usshar Project Approved by NCLT

by Victoria Sterling -Business Editor

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Ambuja Neotia Group to Complete Stalled ⁤Usshar Residential Project Near Kolkata

The National Company Law Tribunal⁢ (NCLT) approved a resolution plan for the usshar project at Batanagar, near ⁢Kolkata, allowing Ambuja Housing and Urban Infrastructure⁢ Company Ltd (AHUICL) to take over and finish construction. This decision,announced on December 24,2023,represents⁢ a⁤ meaningful step forward in a novel “parcel-wise” resolution strategy for​ distressed ⁢real estate in the ‍region.


Background: ‍Riverbank Developers and the Usshar⁢ Project

The ​Usshar project, part of‍ a ​larger 262-acre township⁣ originally ⁣developed ⁢on ‌land formerly owned by Bata India, had stalled due to the financial difficulties of Riverbank Developers. The NCLT’s approval focuses specifically on⁣ the⁣ Usshar residential project, isolating it from the broader financial complexities of ‌the entire township.

The larger‌ township includes‍ additional residential phases, ‌a golf course, and retail spaces, all of which remain subject to ⁣separate resolution processes. This “parcel-wise” approach is being hailed ⁤as‍ a potential landmark for⁣ the regional real ​estate sector.

The Resolution ⁤Plan and ‍Creditor ​Voting

Ambuja Housing and Urban Infrastructure⁤ company ⁣Ltd (AHUICL), a part of the Ambuja Neotia group, submitted the approved resolution plan. The ‍plan is strictly⁢ limited to the completion of the Usshar project ​and does ⁤not include assuming any other liabilities or debts ‌of Riverbank Developers. This focused approach aims to ensure the viability of completing at least‍ one segment of ‍the stalled growth.

according to reports, ⁢financial creditors held approximately 88.8 ‍per ⁢cent of the voting ⁣share‌ in the committee ‌of creditors, while homebuyers accounted for approximately 11.2 ⁤per cent. ​ This distribution⁤ highlights the complex stakeholder landscape in insolvency proceedings involving real estate projects.

Significance of ‌the “Parcel-Wise” Resolution

The NCLT’s decision to⁤ approve a resolution plan for a single project within a larger,distressed township ‌is considered ⁢a significant development.⁤ By⁣ isolating the⁢ Usshar⁤ project, the tribunal has enabled⁣ a viable⁢ segment of the development to move forward without being hindered by the legal and financial issues affecting‌ the entire 262-acre site.

Realtors believe ⁢this approach could become a model for resolving other stalled real estate projects ⁣in the ⁤region, offering a pathway ‍to completion ⁤even when the overall developer‌ faces insolvency.

Timeline ⁣of Events

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