NCLT Approves Aspect Global Ventures’ Resolution Plan for Rite Builtec's Slum Rehabilitation Project
The National Company Law Tribunal (NCLT), Mumbai, approved the resolution plan for Rite Builtec Private Limited on January 16, 2025, resolving a long-standing Slum Rehabilitation Authority (SRA) project in Devipada, Borivali. The plan, proposed by Aspect
NcltRite BuiltecSlum RehabilitationAspect Global VenturesOmkara Assets ReconstructionReal EstateJan 19, 2025
Aspect Global Ventures Private Limited emerged as the successful resolution applicant, bringing hope to the long-affected community.
The resolution plan involves the payment of Rs 36 crore to the sole financial creditor, Omkara Assets Reconstruction Private Limited, against its total admitted claims of Rs 105 crore.
Additionally, the plan includes provisions for the payment of rent amounts to 750 slum dwellers, as directed by the SRA.
This marks the fourth successful resolution overseen by Resolution Professional Amit Karia, who has previously resolved the insolvency of SN Engineering Services Pvt Ltd, Swapnil Promoters and Developers Pvt Ltd, and Manpreet Estates LLP.
The Corporate Insolvency Resolution Process (CIRP) for Rite Builtec was initiated on August 25, 2023.
However, the process faced delays due to a two-month stay by the National Company Law Appellate Tribunal (NCLAT).
Despite the setbacks, the CIRP was completed at the Committee of Creditors (COC) level in around 365 days, with the overall process taking 450 days to reach NCLT approval.
The original financial creditor and sole COC member, Piramal Capital and Housing Finance Limited, assigned its debt to Omkara Assets Reconstruction Private Limited.
Omkara is now set to receive full repayment within 15 days of NCLT approval.
One of the most significant outcomes of this resolution is the relief for over 750 slum dwellers who have been waiting for 15 years.
They will finally receive their homes and overdue rent.
The redevelopment project, spanning 9675.20 sq.
meters of private land and 3000 sq.
meters of MHADA land, will be carried out by Aspect Global Ventures Private Limited.
Key Resolution Highlights
- Admitted Claims Over Rs 170 crores
- Resolution Applicant Aspect Global Ventures Private Limited
- Timeline 450 days from initiation to NCLT approval
- Secured Creditor Omkara Assets Reconstruction Private Limited will receive full payment within 15 days of NCLT approval
- Beneficiaries Over 750 families affected
- Project Site Devipada, Borivali, covering 9675.20 sq.
meters (private) and 3000 sq.
meters (MHADA)
The resolution process was not without its challenges.
Resolution Professional Amit Karia faced several obstacles, including
- Violation of the moratorium by suspended directors
- The absence of crucial books, records, and documents related to the corporate debtor
- Groups of agitated slum dwellers entering the office without prior notice
- Threats from local and other groups
- Illegal construction of structures at the project site
- Frivolous applications filed by parties with vested interests
Despite these hurdles, the successful resolution of Rite Builtec's insolvency process stands as a testament to the dedication and expertise of the resolution professional and the successful bidder, Aspect Global Ventures.
This resolution not only addresses the financial claims but also brings significant social benefits, ensuring a brighter future for the slum dwellers of Devipada, Borivali.
Frequently Asked Questions
What is the total amount of admitted claims in the Rite Builtec resolution plan?
The total amount of admitted claims in the Rite Builtec resolution plan is over Rs 170 crores.
Which company was the successful resolution applicant for Rite Builtec?
Aspect Global Ventures Private Limited was the successful resolution applicant for Rite Builtec.
How long did the entire CIRP process take for Rite Builtec?
The entire Corporate Insolvency Resolution Process (CIRP) for Rite Builtec took 450 days from initiation to NCLT approval.
Who is the sole financial creditor and how much will they receive?
The sole financial creditor is Omkara Assets Reconstruction Private Limited, and they will receive Rs 36 crore within 15 days of NCLT approval.
How many families will benefit from the resolution of Rite Builtec's insolvency?
Over 750 families will benefit from the resolution of Rite Builtec's insolvency, receiving their homes and overdue rent.
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