NCLT approves ₹614 crore resolution plan for stalled Acme Realities

In a major relief for over 300 homebuyers, the National Company Law Tribunal (NCLT), Mumbai Bench, has approved a ₹614.317 crore resolution plan for the insolvent real estate developer, Acme Realities Private Limited. The plan, submitted by Mantra Properties & Developers Private Limited, was approved by the tribunal on Tuesday, bringing an end to the Corporate Insolvency Resolution Process (CIRP) that began in February 2024.

The resolution value Acme Realities significantly surpasses the estimated liquidation value of the company, which stood at just ₹36.02 crore. The total admitted claims from all creditors were a substantial ₹4,328 crore.

Key Distribution of the Resolution Amount:

The approved plan outlines a multi-faceted settlement for different classes of creditors:

1. Secured Financial Creditors (HDFC Entities): Will receive a total cash payment of ₹65 crore as a one-time full and final settlement. This includes ₹19.75 crore for HDFC Capital Affordable Real Estate Fund-1 and ₹45.25 crore for HDFC Bank Limited. This payment is to be made within 60 days of the plan’s approval.
2. Homebuyers (Unsecured Financial Creditors): In the most critical part of the plan, the 303 homebuyers, with admitted claims of ₹525.66 crore, will not receive a cash payment. Instead, the successful resolution applicant (SRA), Mantra Properties, is obligated to complete and hand over their promised flats in Towers 4 and 5 of the ‘Acme Boulevard’ project in Mumbai. The monetary value of these flats is estimated at ₹525.67 crore. The SRA has committed to delivering possession within 18 months from the “Effective Date.”
3. Operational Creditors: Will receive minimal cash payments. Government and other operational creditors will receive approximately ₹1.67 crore, which is a small fraction of their total admitted claims.
4. CIRP Costs & Other Dues: The costs of the insolvency process, estimated at ₹1.50 crore, will be paid on priority. A settlement has also been reached with the Majaswadi Housing Society, the original landowner, which includes upfront payments and future commitments for the redevelopment project.

The Committee of Creditors (CoC), comprising the two HDFC entities and the representative of the homebuyers, had voted 100% in favour of this plan in February 2025.

The tribunal, presided over by Member (Technical) Hariharan Neelakanta Iyer and Member (Judicial) Lakshmi Gurung, emphasized that the commercial wisdom of the CoC is paramount and approved the plan under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), 2016.

The order also brings an end to all related legal challenges after Mantra Properties reached a settlement with the Majaswadi Sarvodayanagar Co-operative Housing Society, which had filed applications objecting to the process.

This approval is seen as a major victory for the homebuyers who had invested in the long-stalled project and ensures the project’s completion rather than a liquidation that would have yielded minimal recovery.

Also See: NCLT allows insolvency proceedings against Raheja Developers