Other developers such as Aanya Real Estate and a consortium of Ashdan Properties, and NNP Buildcon had also submitted revival plans for the company.
The development is an indication of the rising trend of several established developers with sound financials scouting for deals in the property sector through the bankruptcy process.
The latest data from the Insolvency & Bankruptcy Board of India (IBBI) showed 6,199 companies were brought into administration until September-end. Of these, about 1,240 companies were in the real estate sector. Data suggest that about 805 such real estate companies have received resolution plans from bidders.
In this specific matter, in March 2021, the tribunal had admitted the company under the insolvency process and appointed the insolvency resolution professional (IRP). The first meeting of the CoC was held in April 2021.
The resolution professional had received a total 148 claims amounting to nearly ₹271 crore against the company. Out of 148 claims, 125 claims amounting to over ₹236 crore were admitted.
As part of its resolution plan, KGK Realty (India) has agreed to take over the responsibility of completing the said project of Anudan Properties. It has agreed to start the construction of the Thane Project from the CoC’s approval to ensure homebuyers get their homes in a timely manner and to ensure that the corporate debtor is operated and managed as a going concern.KGK Realty (India) may also provide funding in the form of interim finance for incurring the Thane project’s cost and obtaining approvals for commencement of construction at Thane project.
Several strategic buyers and investors are actively scouting for real estate companies with large land parcels, currently undergoing bankruptcy administration for loan defaults, as demand for both residential and commercial properties is witnessing a pick up.
Despite the challenge of insolvency, these companies and their projects are still finding good interest from investors given the presence of tangible assets including the land parcels and unfinished structures with a certain portion of sales achieved already.
In January, the Mumbai bench of the National Company Law Tribunal (NCLT) approved the resolution plan submitted by Adani Good Homes for the city-based developer Radius Estate.
Also, the bankruptcy court’s New Delhi bench approved the resolution plan of Max Estate’s Boulevard Projects that paved the way to resume the construction of the residential project ‘Delhi One’. Max Estate is a real estate arm of the Max Group.
