Ambuja Housing & Urban Infrastructure Company Ltd. (AHUICL), belonging to the Ambuja Neotia Group, has been granted approval by the National Company Law Tribunal, Kolkata Bench, to take over and resurrect the significantly stalled Usshar housing project at Batanagar, situated in the southern periphery of the city of Kolkata. This approval has been granted under the provisions of the Insolvency and Bankruptcy Code as part of the parcel-wise resolution proceeding of the corporate debtor, Riverbank Developers Pvt. Ltd.
As per the resolution plan that has been authorized by the NCLT division bench, the AHUICL will take possession of the asset group that includes the Usshar housing project, measuring around 9.4 acres.
The takeover or acquisition will remain within the asset group and will not include the entire township or assets held by the corporate debtor. It has been settled as part of the resolution plan that Ambuja Neotia Group will pay a lump sum payment of ₹34 crores for the acquisition.
Usshar, this particular project is also part of the much larger township on almost 223.8 acres, which had been pending for several years due to the issues faced by the original developer, thereby making the homebuyers uncertain about the completion of the projects and possession details. This approval will hopefully give much-needed kick-starts to the pending projects.
As per the resolution plan, Ambuja Neotia Group will commit to completing the Usshar residential project, and delivering homes to its existing buyers. What is significant is that the acquisition will not include any existing liabilities and obligations of Riverbank Developers Pvt. Ltd., ensuring a smooth transfer of the said land parcel in the IBC system.
After the approval, Ambuja Neotia has plans to kick-start the revival of the project in a planned manner. Their main focus would be on ensuring compliance with regulatory aspects, financial management, and meeting the revised construction timelines. It can thus be estimated that the group would have to conduct an exhaustive evaluation of the already existing structures, approvals, and infrastructures before starting the execution process.
Mr. Harshavardhan Neotia, Chairman of the Ambuja Neotia Group, said that the approval provides much-needed clarity and stability to a project that had remained in limbo for a long period. He added that the group intends to revive Usshar in a responsible and transparent manner, keeping the interests of all stakeholders, particularly homebuyers, at the forefront, and views the revival as an opportunity to rebuild trust and deliver a thoughtfully planned residential development.
The resolution has received an overwhelmingly positive reaction in the Kolkata property sector, especially in the case of the halted housing projects which are currently proceeding with the process of insolvency resolution. This is an indicator that parcel-by-parcel resolution, as the IBC, has the potential to allow successful developers to revitalize the distressed property.
In the case of Ambuja Neotia Group, which has substantial operations within residential, commercial, hotel, and mixed-use developments in the eastern part of India, the Usshar project is an attempt to revive a pending project that has been pending for a considerable time and help meet the urban housing demand within the eastern region. Since the necessary approvals have been granted, the development of the project is going to attract much attention from buyers as well as other players involved in the fast-growing real estate market as a case study for resolving aborted property projects through the insolvency proceedings.
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