NCLT Approves Ambuja Neotia Group's Resolution Plan for Riverbank Developers' 9.4-Acre Project
The National Company Law Tribunal (NCLT) has given the green light to the Ambuja Neotia group’s acquisition of a land parcel from Riverbank Developers Pvt Ltd. Ambuja Housing and Urban Infrastructure Company Ltd, a part of the Ambuja Neotia group, will acquire the 9.4-acre land. This acquisition is part of a larger township project spanning approximately 223.8 acres.
The Ambuja Neotia group’s resolution plan proposed a payment of Rs 34 crore for the land. This plan was overwhelmingly approved by over 90% of creditors by voting rights before the tribunal’s final approval. The NCLT has observed that the approved resolution plan complies with the provisions of the Insolvency and Bankruptcy Code (IBC) and the applicable insolvency regulations.
Kolkata-based Riverbank Developers is undergoing the insolvency resolution process due to admitted liabilities of Rs 2,358 crore. The resolution of the remaining assets of Riverbank Developers is still ongoing, and the tribunal has directed the invitation of fresh expressions of interest for all assets not included in this project.
Riverbank Developers’ secured financial creditors include HDFC Bank, with dues of Rs 1,325 crore, and Vistra ITCL (India) Ltd, with dues of Rs 237 crore, among others. Apart from Ambuja Housing & Urban Infrastructure, two other companies, MKJ Enterprises Ltd and DTC Projects Pvt Ltd, had also shown interest in acquiring the land parcel through the insolvency resolution process.
Riverbank Developers was admitted into the Corporate Insolvency Resolution Process (CIRP) in April 2024, following an application filed by Canara Bank. The company is engaged in real estate development and has 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 with a 90.61% voting share.
In its order, the NCLT noted that the approved resolution plan not only complies with the IBC but also provides for the payment of insolvency resolution process costs in priority. The plan also sets out the treatment of claims of secured financial creditors, other creditors, and homebuyers, ensuring a fair and transparent resolution process.
