NCLT approves Aspect Global Ventures resolution plan for Rite Builtec
The National Company Law Tribunal (NCLT), Mumbai on 16th January 2025 approved the resolution plan for the corporate debtor Rite Builtec Private Limited, marking a significant milestone in resolving this long-pending Slum Rehabilitation Authority (SRA) project in Devipada, Borivali, Mumbai. Aspect Global Ventures Private Limited is the successful resolution applicant. The resolution plan involves payment of Rs 36 crore to sole financial creditor Omkara Assets Reconstruction Private Limited against its total admitted claims of Rs 105 crore. The resolution plan also has provision for payment of rent amount payable to 750 and slum dwellers, as may be directed by the Slum Rehabilitation Authority (SRA).
This marks the fourth successful resolution overseen by Resolution Professional Amit Karia. He has earlier successfully resolved the insolvency of SN Engineering Services Pvt Ltd, Swapnil Promoters and Developers Pvt Ltd and Manpreet Estates LLP.
The Corporate Insolvency Resolution Process (CIRP) of Rite Builtec was initiated on 25th August 2023, but faced delays due to a two-month stay by the National Company Law Appellate Tribunal (NCLAT). The CIRP has been completed at the COC level in around 365 days, and overall time taken is 450 days.
The original financial creditor cum sole COC member was Piramal Capital and Housing Finance Limited, which assigned its debt to Omkara Assets Reconstruction Private Limited, which is now set to receive full repayment within 15 days of NCLT approval.
Over 750 slum dwellers, who waited for 15 years, will finally get their homes and overdue rent. The 9675.20 sq. meter private land and 3000 sq. meters of MHADA land will now be redeveloped by Aspect Global Ventures Private Limited, the successful resolution applicant.
Key Resolution Highlights:
Admitted Claims: Over Rs 170 crores
Resolution Applicant: Aspect Global Ventures Private Limited
Timeline: 450 days from initiation to NCLT approval
Secured Creditor: Omkara Assets Reconstruction Private Limited will receive its full payment within 15 days of NCLT’s approval
Beneficiaries: Over 750 families affected
Project Site: Devipada, Borivali with land admeasuring 9675.20 sq mtrs (private) & 3000 sq mtrs (MHADA)
Key challenges & hurdles faced by the resolution professional:
– Violation of Moratorium by Suspended Directors
– Absence of Books, Records, Registers, and Documents related to the CD
– Groups of Agitated Slum Dwellers Entering the Office Without Prior Notice
– Threats from Local and Other Groups
– Illegal Construction of Structures at the Project Site
– Frivolous Applications Filed by Parties with Vested Interests
Also See: NARCL may acquire Jaiprakash Associates assets for Rs 12,000 crore
