Noida extends rehabilitation offer to companies with projects under insolvency, ET RealEstate
NOIDA: Developers of housing projects undergoing insolvency proceedings can opt for UP govt’s rehabilitation package over the next two weeks if they choose to withdraw their cases with the National Company Law Tribunal (NCLT) or in different courts, Noida Authority told them on Thursday.
Govt’s rehabilitation package, introduced last Dec, gives several concessions to developers, including a two-year waiver from paying interests and penalties imposed during the pandemic. In return, developers must deposit 25% of their revised dues within 60 days of agreeing for the package. According to the policy, projects under insolvency could avail the benefits on withdrawal of cases along with commercial projects that have a residential component.
Noida Authority CEO Lokesh M said the notices were issued to four to five developers that have 18-20 stalled projects in the city. It includes prominent developers Supertech, ATS and Logix Group, sources said.
They told TOI that the developers have been given a 15-day window to make the decision if they want to opt for the rehabilitation package for stalled projects.
According to an Authority source, the offer was extended to Logix Group’s housing projects Zest in Sector 143 and Blossom County in Sector 137.
Zest, for which the developer is yet to pay Rs 666 crore, has been in NCLT since 2022. Blossom County, with dues amounting to Rs 446 crore, was admitted for insolvency proceedings in July last year.
Letters were issued to Supertech Cape Town in Sector 74 and Eco City in Sector 137. The developer’s liabilities stand at Rs 958 crore for both the projects. The tribunal had admitted insolvency proceedings against Supertech Limited in March 2022, but in June, the National Company Law Appellate Tribunal allowed the developer to complete the project under the supervision of an insolvency resolution professional (IRP).
Among commercial projects with residential components, the offer was made available to Supertech Realtors’ Supernova project in Sector 94. NCLT initiated insolvency proceedings for it just last week after Bank of Maharashtra alleged that the developer had failed to repay debt of Rs 168 crore.
The developer owes the Authority Rs 2,245 crore, making it the largest defaulter among commercial projects.
Likewise, ATS Heights’ Knightsbridge in Sector 124 was recently admitted by NCLT though an interim stay was imposed by the appellate tribunal. This is the second largest defaulter in commercial projects, with dues amounting to Rs 2,129 crore.
The Authority issued notices to developers involved in the Sports City projects. As group housing projects are not covered in the rehabilitation policy, the developers have been asked to submit their plan to clear their dues within 15 days. If they don’t, punitive action such as partial cancellation of land allotment and sealing of unsold inventories can be taken against them, the Authority warned.
ATS Homes, lead developer of Sports City, owes the Authority Rs 640 crore. The four developers involved in Sports City in Sector 150 have also been issued notices. Celerity Infrastructure (ATS subsidiary) with dues of Rs 178 crore, Abot Buildcon (Rs 27 crore), Logix Infradevelopers’ subsidiary Elicit Realtech (Rs 73 crore), and Explicit Estates (Rs 51 crore) have been asked about their action plans to clear their dues.
