Singla Builders resolution plan promises delivery of flats to homebuyers of Ansal Lotus Melange

Great news for Ansal Lotus Melange homebuyers. The National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Singla Builders and Promoters Limited, offering a glimmer of hope for the long-suffering residents. The plan, which received a 100% approval from the committee of creditors, promises to deliver fully built flats to homebuyers without any delay payments or compensation, once they clear their outstanding dues.

Here’s what the plan entails for different stakeholders:

• Homebuyers: As the top priority, homebuyers of Ansal Lotus Melange will receive their flats upon payment of the remaining balance as per the Construction Linked Plan. Singla Builders acknowledges that their timely payments are crucial for the plan’s success and the subsequent construction and delivery of flats.
• Commercial Buyers: The commercial portion of the City Center project is already complete and ready for occupancy. The resolution applicant will immediately call upon allottees to take possession of their units after clearing their dues.
• Studio/Celebrity Suite Buyers: Possession of these units will be handed over within six months from the date Singla Builders obtains all necessary approvals and renewals. This process is expected to take approximately six months.
• Operational Creditors: They will receive Rs. 79,40,484, settling their dues in full and final. The payment will be spread across three equal installments over the next three quarters.
• Other Creditors: These creditors will receive Rs. 43,72,530, settling their dues in full and final. Similar to operational creditors, the payment will be distributed in three equal installments.

The resolution plan also addresses:

• Claims of additional creditors: If any claims from homebuyers, commercial buyers, studio/celebrity suite buyers, or other creditors are accepted after the plan’s submission, they will be treated equally with the existing creditors.
• Workmen and Employees: As per available information, there are no outstanding dues towards them, and hence, no provisions have been made.
• Unsecured Financial Creditors: Similar to workmen and employees, there seem to be no unsecured financial creditors, and therefore, no provisions exist for them.
• Shareholders and others: All issued shares will be compulsorily transferred to Singla Builders for a consideration of Rs. 10.

The resolution plan has a validity of 30 months, with the first six months dedicated to obtaining necessary approvals and the remaining 24 months for construction. Payments will be made as per the defined schedule.

This NCLT approval marks a significant turning point for Ansal Lotus Melange homebuyers, who have endured years of uncertainty and delays. GK Crystal Homes, an operational creditor, filed an application against Ansal Lotus Melange Projects under Section 9 of the IBC on April 7, 2021. The court admitted the application, imposed a moratorium, and appointed Mr. Devendra Umrao as the interim resolution professional.

Also Read: Homebuyers may get possession of flats/plots during insolvency process of real estate firm