Delhi-NCR based developer Three C Homes is set to be liquidated as the National Company Law Tribunal has rejected the resolution plan approved by the CoC to acquire the bankrupt company.
The tribunal noted that the resolution plan approved by the Committee of Creditors provides for an amount of Rs 180.34 crore against the liquidation value of Rs 480.70 crore.
Even against Rs 180.34 crore, the successful resolution applicant, Ace Infracity Developers Pvt Ltd, is obliged to bring in only amount of Rs 95 crore by way of fresh infusion of fund, which is also spread over a period of two years and the rest Rs 85 crore are to be contributed by the home buyers.
The bankruptcy proceedings were underway at the tribunal since September 2019, on a plea by Arun Kumar Sinha, one of the home buyers for the company’s Lotus City project in Greater Noida, Uttar Pradesh.
The project was sold to over 512 homebuyers in 2011 but did not kick start due to land disputes.
The Delhi bench of the tribunal also observed that the proposed socio-economic arrangement in the resolution plan, to deal with the ’cause of default’ being Yamuna Expressway Development Authority’s dispute with farmers, which also delayed the “Lotus City” and “Parkspace” projects, were unsustainable.
“In these circumstances, the only course open to this authority is to direct the RP (resolution professional) to file appropriate application immediately for seeking liquidation order of the CD (corporate debtor), Three C Homes Pvt Ltd,” the order said.