REAL ESTATE INSOLVENCY
NCLAT limits insolvency against Raheja to one project only, seeks report for other projects
The National Company Law Appellate Tribunal (NCLAT) has narrowed down insolvency proceedings against Raheja Developers to just its 'Raheja Shilas' project. The tribunal has also requested a detailed report from the Interim Resolution Professional (IRP) on the status of Raheja Developers' other projects.
Raheja Developers moves NCLAT against insolvency
Raheja Developers is facing insolvency proceedings initiated by flat buyers of its Gurugram-based Shilas project. The buyers allege a default of Rs 112.90 crore due to non-delivery of units. Raheja Developers, however, claims the delay was due to unforeseen circumstances. The case is now before the National Company Law Appellate Tribunal (NCLAT).
NCLT directs initiation of insolvency proceedings against Raheja Developers
The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Raheja Developers following a petition by flat buyers in the Gurgaon-based Shilas project. The NCLT cited "debt due and default" by the company for its failure to deliver units on time despite receiving payments. An Interim Resolution Professional has been appointed as the case proceeds.
Realty insolvency reforms to push for streamlined solutions for homebuyers, lenders
The Insolvency and Bankruptcy Board of India (IBBI) has proposed reforms to expedite the insolvency process for real estate companies, aiming to provide relief for homebuyers. The proposed changes prioritize timely possession of units, ensure fairer claim valuations, and increase transparency for homebuyers invested in projects undergoing insolvency proceedings.
NARCL ups offer for Jaiprakash Associates debt to Rs 12,000 crore
NARCL has increased its bid to acquire the debt of Jaiprakash Associates to ?12,000 crore. The revised offer comes as the company's appeal against insolvency proceedings is pending. The offer involves an upfront cash payment and security receipts guaranteed by the government. Lenders are currently evaluating the offer as a potential resolution to the long-delayed insolvency case.
Buyers in possession should get ownership of flat: IBBI
The Insolvency and Bankruptcy Board of India (IBBI) has proposed new rules that could expedite the resolution process for bankrupt real estate firms. The proposed changes would allow for the transfer of property ownership to buyers who have paid their dues and give resolution professionals more flexibility in handing over possession of units.
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IBBI proposes to expedite flat ownership transfers in insolvent projects
The Insolvency and Bankruptcy Board of India (IBBI) has put forth a proposal that could expedite the resolution process for stressed real estate firms. The proposal aims to grant ownership of plots or apartments to buyers who have cleared their dues and are already residing in their units, contingent on approval from the committee of creditors.
Nimbus Projects takes over stalled residential project in Noida, to invest Rs 1,000 crore
Nimbus Projects Ltd will invest nearly Rs 1,000 crore to revive the stalled Sunworld Arista housing project in Noida, gaining about a million sq ft of saleable area. Approved under UP¡¯s co-development policy, the project anticipates Rs 1,400 crore in revenue while addressing RERA cases and financial closures.
Noida authority approves two more projects under co-development policy
Noida authority has approved two projects under Uttar Pradesh¡¯s co-development policy, allowing Nimbus Projects and Theme County to revive stalled projects in sectors 168 and 115, respectively. The initiative aims to aid 1,000 homebuyers and ensures payment of dues and financial closure by the new developers.
Authum, Kotak, others file bids for Lavasa Corporation
Creditors have extended the timeline to submit expressions of interest to October 24 after requests from three more parties. Creditors have also put to vote a proposal to replace Deloitte-backed resolution professional (RP) Shailesh Verma with Udayraj Patwardhan who will be supported by EY. Voting is open till the end of the week, documents accessed by ET showed.
MahaRERA flags 314 housing projects under insolvency, cautions homebuyers
MahaRERA has warned homebuyers against purchasing properties in 314 projects undergoing insolvency proceedings. Significant investments have already been made in these projects. Developers include Wadhwa Buildcon LLP, HDIL, and RNA Corp. The list is available on MahaRERA¡¯s website, and homebuyers are advised to check it before making a decision.
NCLT initiates insolvency proceedings against Jupiter Landscapes over Rs 573 cr debt
The National Company Law Tribunal has ordered the corporate insolvency resolution process for Jupiter Landscapes due to defaulting on non-convertible debentures worth Rs 573.98 crore. The default occurred in March 2023. Edelweiss Asset Reconstruction Company filed the petition. A moratorium is in place to prevent legal actions or asset transfers during the insolvency process.
IBBI tweaks norms to speed up insolvency resolution in housing
The IBBI has introduced amendments to the Insolvency Resolution Process for Corporate Persons, effective from September 24. These changes include appointing an interim representative for large creditor groups, like homebuyers, to ensure their effective representation during insolvency proceedings. This aims to enhance efficiency and fairness in the insolvency process.
NCLT approves acquisition of Radius Estates by Adani-owned Bridgeport Realtors
The National Company Law Tribunal has approved the acquisition of Radius Estates and Developers by Bridgeport Realtors, a subsidiary of Adani Group's Adani Goodhomes. This merger aims to revitalize Radius Estates, simplify corporate structure, and enhance financial strength. The plan was previously validated by the National Company Law Appellate Tribunal in May 2024.
Regulations, data quality makes India top global improver in realty transparency
India is leading the global front in enhancing transparency, with expanded data coverage and improved data quality across various property sectors. The country is now ranked among the top ten global improvers and was the most improved in Asia Pacific in the 2024 rankings.
India ranks 31st in JLL's Global Real Estate Transparency Index
Global property consultant JLL has announced that India's top real estate markets have entered the 'transparent' zone for the first time, driven by the institutionalisation of commercial assets and improvements in data access. This development was highlighted in JLL's 'Global Real Estate Transparency Index, 2024'. With a composite score of 2.44, India now ranks 31st among 89 countries.
Naredco urges housing ministry to provide relief to real estate developers in NCR
NAREDCO appealed to the Ministry of Housing and Urban Affairs for rescheduling builders' land dues in Haryana and Uttar Pradesh. They requested a zero-period during COVID-19 years and extensions for project completions. The committee identified stalled projects and stressed units, emphasizing the need for relief to boost economic activity and housing delivery.
Suraksha Group puts Rs 250 cr in Jaypee Infratech, gets Rs 3K cr loan facility to complete 20K flats
Suraksha Group invested Rs 250 crore in Jaypee Infratech and arranged a Rs 3,000 crore loan following its acquisition. With Rs 1,250 crore in funds, the group aims to complete 20,000 unfinished flats in Delhi NCR, accelerating construction activities and awarding contracts to various companies.
NCLT approved record 269 resolution plans in FY24
The National Company Law Tribunal (NCLT) approved a record 269 resolution plans under the insolvency law in 2023-24. This marks a 42 percent increase from the previous year, according to a report by Crisil Ratings. This surge was largely due to a greater investor interest in the turnaround of stressed assets and the appointment of new NCLT members.
Singapore firm gets NCLT nod to buy Alchemist Infra Realty
The tribunal directed Vantage Point Asset Management to furnish the updated bank guarantee, which should remain valid till the implementation of the resolution plan. The resolution professional had received claims of about Rs 1,293 crore and admitted claims of about Rs 947 crore.
How this Code is helping homebuyers, Economic Survey explains
The Economic Survey 2023-24 highlights the pivotal role of the Insolvency and Bankruptcy Code in revitalizing stalled real estate projects and strengthening homebuyers¡¯ rights. The IBC, alongside the Real Estate Act, has streamlined the resolution process for real estate companies, leading to successful outcomes and enhanced liquidity in the sector.
Key amendments to IBC, companies law likely in winter session
MCA will amend IBC and Companies Act, 2013 to expedite resolutions, reduce compliance burdens, and broaden CSR norms in the winter session. Changes include creditor-led mechanisms, wider pre-pack resolution, and stronger audits. Real estate-specific IBC regime is unlikely. Timely resolutions crucial; 68% of insolvency cases exceed 9 months; corrected timing improves creditor recovery, says Veena Sivaramakrishnan.
Indian realty surge drives debt financing demand, to top Rs 14 lakh cr by 2026: Report
The real estate market in Mumbai is experiencing a resurgence driven by government policies, urbanization, and economic recovery, leading to increased demand for financing. The sector is expected to create debt financing opportunities worth over Rs 14 lakh crores by 2026, with lenders seeing opportunities for growth and innovation in funding structures.
NCLT orders insolvency proceeding against Supernova project developer Supertech Realtors
NCLT orders insolvency proceedings against Supertech Realtors for defaulting Rs 168.04 crore to Bank of Maharashtra in the Supernova project.
Higher property prices, changes in law to boost debt recovery from stressed realty projects: Report
The recovery of debt from stressed residential realty projects is expected to increase in the current financial year due to rising property prices and regulatory changes. Crisil forecasts a bad loan recovery rate of 16-18% by FY25, driven by improved project viability, strong demand, and investor interest. Recent amendments to IBBI regulations are also seen boosting real estate asset resolution. With residential realty demand projected to grow by 10-12% and low unsold inventories, ARCs are expected to expedite the turnaround of stressed projects.
ARCs to see 5-7% higher recoveries from residential realty in FY25: CRISIL Ratings
Additionally, recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations are expected to expedite the resolution of stressed real estate assets in the medium term, enhancing the overall recovery process for ARCs.
Insolvency proceedings ordered against Jaiprakash Associates; these Jaypee homebuyers won't be impacted
Jaypee home buyers: Jaiprakash Associates Ltd (JAL) is currently in the process of insolvency proceedings, and an appointed resolution professional by the NCLT will now assume control. As per a news report from the Times of India, the board, previously led by the Gaurs, will cease to function.
NCLAT upholds Adani Goodhomes bid with 93% haircut for Radius Estate
The Insolvency Appellate Tribunal NCLAT upheld its Adani Goodhomes' resolution plan for Radius Estate. NCLAT rejected petitions from two dissenting financial creditors, and approved the plan to provide possession to nearly 700 flat owners without price escalation. The plan was opposed by Beacon Trusteeship and ICICI Prudential Venture Capital Fund Real Estate, who claimed it was unfair, but NCLAT affirmed the Commercial Creditors' Committee's decision.
Noida housing project pulled back from insolvency now offers possession to buyers
RG Luxury Homes project in Gautam Buddh Nagar district, Greater Noida West, has received the occupancy certificate after facing insolvency and a fund crisis. The project, delayed since 2010, is now offering possession to buyers of 800 flats. The project serves as a beacon of hope and an example for other stuck projects in Karnal, Ghaziabad, and Noida.
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