NOIDA: In the cycle of legal disputes and delays that many housing projects in the city find themselves embroiled in, it’s a rare bright spot.
Around 850 homebuyers of a condominium in Greater Noida West will get their homes, five years after filing a case at the National Company Law Tribunal when all they could see at the project site were the bare concrete frames of towers.
The Greater Noida Industrial Development Authority (GNIDA) recently issued occupancy certificates (OCs) for the flats at RG Luxury Homes in Sector 16B, which were completed under the supervision of an insolvency resolution professional (IRP) but with the original developer staying at the helm.
The completed flats are in four towers — A, B, C and M. The society has 13 towers. “Following the possession of 854 units, we will offer another 600 units over the next quarters,” RG Group director Himanshu Garg said.
Manoj Kulshrestha, the IRP, said a temporary OC was received for the units last year, and the offer of possession was extended to homebuyers along with a request to complete their payments.
“Now, with the receipt of the OC, the registry of flats will also commence. We have also applied for OC for another 600 flats in three other towers and hope to receive it in a couple of months. Work on two more towers, comprising 400 flats, is under way,” Kulshrestha said.
“Considering the current scenario of real estate projects facing NCLT proceedings and prolonged resolution processes, it was a daunting task to arrange funds and initiate the stalled project. To complete the project, the promoters sold their personal assets and collaborated with financial institutions – IIFL and Indiabulls – which provided seed money of around Rs 30 crore to initiate the stalled project,” the IRP added.
The developer has urged GNIDA to extend benefits of govt’s rehabilitation package for stressed projects, expressing willingness to clear its dues (Rs 180 crore). The package will allow it to get a two-year waiver on interests and penalties for Covid. However, according to govt guidelines, projects that are before courts cannot be considered for the rehabilitation package.
The residential project, comprising two and three BHKs, was launched in 2010 over 18.5 acres. According to homebuyers, when construction work stopped in 2016, only the outer structures of nine towers with over 1,900 flats were complete. In Feb 2020, after NCLT proceedings were completed, the National Company Law Appellate Tribunal (NCLAT) issued a “reverse insolvency order”, directing the developer to collaborate with the IRP and complete the project within a stipulated time frame.
The work, however, progressed tardily over the next year and a half because of Covid. Kulshrestha was appointed IRP in July 2021 to revive the process. In Sept 2022, keys were handed over to some homebuyers. Completions picked up pace in 2023.
