Nclt Nod To Flat Buyers To Finish Project, Real Estate News, ET RealEstate

August 26, 2023

KOLKATA: In a major development in the history of real estate development, the National Company Law Tribunal (NCLT), Kolkata bench, has given rights to the flat buyers to complete a project abandoned by three developers.

There were 639 buyers (owners), who had paid an advance amount to the realtors for a land near Baruipur in South 24 Parganas. However, the developer had failed to develop the land parcel and the buyers moved the NCLT against the developer firms. The resolution professional (RP) for these cases was Kamal Jain.

The amounts claimed in these cases were Rs 9.5 crore, Rs 17.2 crore and Rs 47 crore while the admitted amounts were Rs 9.6 crore, Rs 19.6 crore and Rs 58 crore respectively. “Here, admission was more than the claimed amount because as per the Supreme Court order, in housing sector resolutions, buyers should get 8% interest on advances,” an expert added.

As per the order in response to the invitation for EoI published on June 17, 2022, three EoIs (expression of interest) were received. A provisional list of prospective resolution applicants was issued on June 25, 2022 and the final list of prospective resolution applicants was issued on June 30, 2022. The RP then shared the information memorandum, evaluation matrix and request for resolution plan (RFRP) with the prospective resolution applicants on June 25.

Three resolution plans were received, but only the resolution plan submitted by the Plot Buyers of Baruipur Bloomfield Project was found to be compliant. It was stated that the resolution applicant (Baruipur Bloomfield) has proposed to raise funds through the collection of outstanding amount due from existing plot buyers, if any on case-to-case basis, Share Capital Contribution of SPV and Cost Escalation Charges.

The said funds raised will be used for execution and completion of the Baraipur Bloomfield Project. “Some portion of the excess land would be sold to generate cash,” it added.

  • Published On Aug 26, 2023 at 09:18 AM IST

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