NCLT approves Rs 140-cr resolution plan by Ace Infracity Developers for Three C Homes
The New Delhi bench of the National Company Law Tribunal (NCLT) has approved the Rs 140 crore resolution plan submitted by Ace Infracity Developers for real estate firm Three C Homes Pvt Ltd.
As per the resolution plan, Ace Infracity Developers pays Rs 70.81 crore to Yamuna Expressway Industrial Development Authority (YEIDA) for farmer’s compensation and Rs 3.69 crore as lease rent. The Resolution plan also has a provision of paying Rs 67.12 crore as additional compensation to the farmers. The resolution plan of Ace Infracity Developers was approved by the CoC by 100% vote shares in August 2020.
The fair value of Three C Homes Pvt Ltd was arrived at Rs 600 crore and the Liquidation value was Rs 481 crore. Total admitted claims by homebuyers against Three C Homes was Rs 126 crore.
The resolution plan, which approved by the CoC in August 2020 faced strong opposition from both homebuyers as well as Yamuna Expressway Industrial Development Authority, which has acquired from framers the land on which Three C Home housing project is located.
Special concessions for homebuyers
The resolution applicant — Ace Infracity Developers – made special reconciliation provisions in the resolution plan. This include the promise that genuine buyers refund of principal shall be allowed from case-to-case basis.
The resolution applicant also made the provision that it is not extinguishing any bona fide and genuine claim of allottee who has not filed any claim before the resolution provision. As per resolution plan, Ace Infracity Developers will do the same treatment with the future bona fide and genuine claims of plot-owners who could not submit their claims before the RP as mentioned in the resolution plan.
Objection of YIEDA
The Resolution Plan in its current form results in the Resolution Applicant acquiring approximately 100 acres of land on payment of a mere pittance of Rs 67.12 crore towards outstanding dues and Rs 506 crores payable by the Corporate Debtor in terms of lease deed.
The resolution plan permits the Resolution Applicant to develop, exploit and profiteer from public asset without having to bear any burden and the said Resolution Plan is contrary and prejudicial to the public interest.
NCLT’s repose to YIEDA’s objection
The adjudicating authority noted that the resolution plan has made adequate provisions with respect to all the objections raised by YEIDA to the resolution plan — dues to the Authority, acquiring of the Land and regarding Section 30(2) of the Code, even though no claim was filed at the CIRP stage by YEIDA to the resolution professional of the corporate debtor.
The term of the resolution plan is 24 months from the approval of resolution plan by NCLT within which the plots would be developed and delivered to the allottees and all actions contemplated under the plan will be completed. The Monitoring Committee will continue till the closing date.
The Resolution plan will be valid for a period of 6 months from the date of submission of this plan including any revisions to the plan. In case of extension of resolution plan submission date by the resolution professional, the validity period of this plan will also be deemed to be valid for a period of six months from such revised submission date.
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