NCLT approves Rs 367.93-crore resolution plan for Three C Green Developers, orders CBI probe into Noida Sports City land scam
The National Company Law Tribunal’s Special Bench (Court-II) has approved a Rs 367.93 crore resolution plan submitted by Gurgaon-based Hynite Farms Private Limited for insolvent Noida real estate firm Three C Green Developers Pvt Ltd, while directing the Central Bureau of Investigation to probe alleged large-scale collusion between builders and New Okhla Industrial Development Authority (NOIDA) officials in the allotment of Sports City land in Sector 79.
The bench of Ashok Kumar Bhardwaj (Judicial Member) and Ravindra Chaturvedi (Technical Member) allowed IA-40/ND/2025, filed by resolution professional Ashok Kumar Gupta seeking approval of the plan under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, against corporate debtor Three C Green Developers (matter no. IB-380/ND/2020).
Plan terms
Hynite Farms’ resolution plan, approved by the Committee of Creditors with 84.83 percent voting share on June 14, 2025, comprises a resolution value of Rs 94.03 crore towards CIRP costs and creditor settlements and a further Rs 273.90 crore for completion of the project.
Secured financial creditors — CBM Constructions LLP and Prateek Infraprojects Pvt Ltd, through IDBI Trusteeship — with admitted claims of Rs 159.63 crore, will receive Rs 50 crore, a 31.32 percent recovery. Financial creditors in the homebuyers’ class, with admitted claims of Rs 256.08 crore under the “Lotus Yardscape Phase-I” project, have been offered three options: allotment of plots at Rs 30,000 per square yard, allotment of high-rise units at Rs 10,000 per square foot, or a phased refund of the principal amount.
The competing bid from M3M India Private Limited, which offered Rs 183.52 crore against Hynite Farms’ Rs 287.66 crore (excluding construction, interest and administrative costs), was not approved by the CoC.
NOIDA dues and Supreme Court intervention
NOIDA Authority had claimed Rs 362.20 crore in dues; the resolution professional had initially admitted Rs 116.73 crore. Following a Supreme Court order dated May 25, 2026 in SLP(C) No. 10159/2025 — arising from an Allahabad High Court judgment — NOIDA and the successful resolution applicant negotiated an addendum fixing the recalculated outstanding dues at approximately Rs 212.11 crore, payable 20 percent within two months of plan approval and the balance 80 percent over three years in six half-yearly instalments. NOIDA has withdrawn its objections to the plan following the addendum.
The tribunal directed that the amount payable to NOIDA “would be Rs 212.11 crore or more,” subject to the outcome of the pending Supreme Court proceedings, next listed for September 30, 2026.
Allahabad High Court’s land scam findings
The NCLT order draws heavily on the Allahabad High Court’s judgment of February 24, 2025 in Three C Green Developers Pvt Ltd & Ors v. State of UP & Ors, which found that builders allotted land under NOIDA’s 2010-11 Sports City scheme had violated allotment conditions — including unauthorised change in shareholding of sub-lessee companies and failure to develop mandated sports facilities — resulting in an estimated Rs 9,000 crore loss to the state exchequer, per a Comptroller and Auditor General report.
The High Court had directed a CBI inquiry against “conniving officials” of NOIDA Authority and allottees/builders involved in the scam and expressed concern that no action had been taken in the nine years since the CAG first flagged the irregularities in 2021.
Citing these findings, the NCLT held it “may not turn a blind eye” to the fraud while approving the resolution plan, and appointed Justice Dilip Gupta, a former judge of the Allahabad High Court, as an independent Observer to oversee implementation of the plan, monitor pending avoidance-transaction applications, and ensure the CBI probe against those responsible — potentially extending to other companies in the Three C Group — is pursued.
Avoidance applications and land possession
The tribunal separately disposed of three interlocutory applications (IA-1182, IA-1193 and IA-1396 of 2025) concerning avoidance, undervalued and fraudulent transactions worth roughly Rs 84.2 crore identified by forensic auditors A.K.A.S & Associates LLP, directing that these continue to be pursued by the resolution applicant post-approval under the supervision of Justice Gupta.
The order also notes that NOIDA has handed over physical possession of only 1,15,333 square metres of the 2,14,979 square metres of leasehold land allotted to the corporate debtor, with the balance 99,646 square metres yet to be transferred — a dispute that had earlier led to multiple CIRP timeline extensions since 2022.
Implementation timeline
The tribunal set a total implementation period of 45 months, with no additional extension available to the resolution applicant on grounds of force majeure. Key milestones include payment of CIRP costs within 90 days, payment to financial creditors within 27 months, and payment to statutory/government creditors within 36 months. The moratorium under Section 14 of the IBC stands lifted with effect from the date of the order.
The Monitoring Committee constituted under the plan — comprising the resolution professional as chairperson, one nominee each of secured financial creditors and homebuyers, and two nominees of the resolution applicant — has been directed to file monthly progress reports before the tribunal.
A related application, IA-2659/ND/2026, filed seeking rejection of the resolution plan, remains pending and is listed for hearing on July 3, 2026. The tribunal clarified that operation of its order approving the plan will abide by the outcome of that application.
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