CIRP proceedings were ordered against the Granite Gate Properties Pvt Ltd (GGPPL), a Three C (3C) group owned company on 10/01/2019. The company was engaged in developing real estate projects in Noida with the name of Lotus Panache and Lotus Boulevard. Both projects were launched in early 2010 and were abandoned by the 3C group. There are 19 towers to be completed in the Lotus Panache project and 3 towers in Lotus Boulevard.
The insolvency proceedings started on the application of one Mr. Shinoj Koshy, financial creditor, homebuyers class. The principal bench of NCLT appointed Mr. P.S. Soni as the Interim Resolution Professional (IRP) for the GGPPL. However, owing to the dissatisfaction in the way CIRP was being run, the CoC removed Mr. P.S. Soni and the AR, Mr. Sunil Kumar Aggarwal. Members of CoC had filed complaints in IBBI and NCLT against Mr. Soni. On the order of NCLT, followed by CoC voting, Mr. Chandra Prakash was appointed as the Resolution Professional and Mrs. Rakesh Verma was appointed as the AR for GGPPL.
Fast forward, three developers listed below submitted their bids to take over GGPPL and construct Lotus Panache and Lotus Boulevard.
- M/s SMV Agencies Pvt. Ltd. ( Jaipuria Group)
- M/s UV Asset Reconstruction Co. Pvt. Ltd.
- M/s Purvanchal Projects Pvt. Ltd.
The CoC voted for SMV (Jaipuria) with an 85% majority and finalized the resolution plan. Following are the highlights of the resolution plan submitted by SMV:
- Completion of pending construction in 24 months.
- Apartment owners shall have to pay their dues only in accordance with the payment plan agreed at the time of purchasing the apartment and no escalation would be charged.
- Penalties in accordance with the law in case of delay in construction.
- Unconditional plan in complete compliance of IBC provisions.
- Homebuyer’s elected representatives in the monitoring committee to oversee the implementation of the resolution plan.
- IFMS shall be handed over to the AoA upon completion of projects.
- No excess money is being recovered from the residents who are already occupying their apartments.
- Noida AUthority is treated as an Operational Creditor and shall be paid in accordance with law.
- In case of recovery from the avoidance application filed in NCLT, the homebuyers would be compensated with 90% share of recoveries going to HBs.
Following an internal voting among the CoC members, Mr. Amit Chauhan, President, Lotus Panache Welfare Association was nominated as representative of homebuyers in the monitoring committee. Mr. Sumeet Saxena, from LPWA was nominated as member of legal committee to oversea the NCLT cases and recoveries of siphoned off money. The plan is currently submitted to NCLT and pending approval. We will keep you posted on the development in this case.
GGPPL resolution is setting an example for housing projects caught in the unpredictable CIRP processes and leading by example of how the homebuyers and the resolution professional can work to revive the company.