Ambuja Neotia Secures NCLT Approval for Riverbank Developers Acquisition

The National Company Law Tribunal (NCLT) has given the green light to Ambuja Neotia's acquisition of Riverbank Developers, a Kolkata-based real estate firm, through the insolvency resolution process. The deal involves the assumption of ₹2,358 crore in liabilities and an upfront payment of ₹34 crore by Ambuja Neotia.

Riverbank Developers had significant financial obligations to various secured financial creditors. HDFC Bank, with dues of ₹1,325 crore, and Vistra ITCL (India), with dues of ₹237 crore, were among the major creditors. Over 90% of the creditors, by voting rights, approved Ambuja Neotia's resolution plan, which did not disclose further monetary details beyond the initial payment to lenders.

Apart from Ambuja Neotia's subsidiary, Ambuja Housing & Urban Infrastructure, two other companies, MKJ Enterprises and DTC Projects, had also expressed interest in acquiring Riverbank Developers through the insolvency resolution process. However, the Ambuja Neotia plan was ultimately chosen by the committee of creditors (CoC) with a 90.61% voting share.

The NCLT's Kolkata bench has formally concluded the corporate insolvency resolution process (CIRP) of Riverbank Developers, paving the way for the implementation of the revival plan. Riverbank Developers was admitted into CIRP in April 2024, following an application filed by Canara Bank. The company is heavily involved in real estate development and had a significant exposure to homebuyers. According to the tribunal's order, the corporate debtor had 2,493 allottees, with claims from 2,471 homebuyers admitted during the resolution process.

The resolution professional had invited expressions of interest from prospective resolution applicants and received three resolution plans. After multiple rounds of discussions, negotiations, and evaluation meetings, the committee of creditors (CoC) approved the plan submitted by Ambuja Housing & Urban Infrastructure Company Ltd. In its order, the NCLT observed that the approved resolution plan complies with the provisions of the Insolvency and Bankruptcy Code (IBC) and the applicable insolvency regulations.

This acquisition is a significant step for Ambuja Neotia, as it strengthens their presence in the Kolkata real estate market and provides a platform for further growth and development. The successful resolution of Riverbank Developers' insolvency case also sets a positive precedent for other distressed real estate companies in India, demonstrating the effectiveness of the insolvency resolution process in revitalizing the sector.