For the first time in Gautam Buddh Nagar district, a long-delayed project, RG Luxury Homes in Greater Noida West, has received an occupancy certificate and is offering possession to buyers of over 800 flats. Launched in 2010 with an initial deadline of 2014, the 18-acre project faced construction delays and was halted in 2016 due to a fund crisis. In 2019, homebuyers approached the National Company Law Tribunal (NCLT). The project’s phase 1, with around 1,900 units, was impacted by NCLT proceedings since September 2019. However, in February 2020, the NCLT issued a “reverse insolvency order,” instructing the promoter to complete the project under the supervision of an insolvency resolution professional (IRP).
In October 2021, construction resumed under the IRP’s supervision, and in February, the project received occupancy certificates (OCs) for 854 flats in four towers. IRP Manoj Kulshreshtha, who took over from a previous IRP, highlighted the challenges faced, including fund shortages. He credited the project’s completion to efforts from all stakeholders and strict compliance with regulations.
RG Group Director Himanshu Garg confirmed the receipt of the OCs and the commencement of possession handovers. This project marks a significant milestone as the first in the region to offer possession to buyers after reverse insolvency. According to Uttar Pradesh Real Estate Regulatory Authority (RERA), 133 projects registered with it were in the NCLT as of February, making RG Luxury Homes’ achievement noteworthy.
CREDAI, the apex body of real estate developers, praised the development, calling it a “beacon of hope” for the industry. They emphasized the need for special considerations for promoters facing difficulties with NCLT but committed to completing projects with strong backing from investors and stakeholders.
IRP Manoj Kulshreshtha, also overseeing projects in Karnal, Ghaziabad, and Noida, believes this project can serve as a model for other stuck projects, highlighting the potential of reverse insolvency to revitalize stalled real estate developments.
This successful turnaround of RG Luxury Homes in Greater Noida West demonstrates the effectiveness of the reverse insolvency process in resolving long-standing issues and delivering homes to buyers who have been waiting for years. It also showcases the collaborative efforts of various stakeholders, including the IRP, regulatory authorities, and the developer, in overcoming challenges and ensuring project completion. The positive outcome of this project could inspire confidence among homebuyers and investors in similar projects facing insolvency, encouraging them to explore viable solutions for completion.
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