The first project in Gautam Buddha Nagar to obtain an OC following the NCLT’s order of reverse insolvency
- The group obtained OC from the competent authority and gearing up for possession.
- Earlier, the group obtained OC for 850 units and offering possession to the owners.
- After NCLT had proceeded, RG Group achieved this breakthrough under the monitoring of IRP.
Noida, 28 December 2024: Breaking the stereotype, RG Group has completed construction and formalities of another phase of RG Luxury Homes and obtained the Occupancy Certificate (O.C) for towers D, E and F from competent authorities under the monitoring of IRP (Insolvency Resolution Professional). The group is all set to offer possession and hand over the keys to 600 flat owners. Last year the group obtained OC in A, B, C and M towers comprising 850 units. The project is located in Sector-16B in the Greater Noida West, near Ek Murti Chowk in Uttar Pradesh.
RG Group is gearing up to offer possession of units and commence the process of handover in these units. As a breakthrough, RG Luxury Homes is the first project in Gautam Buddha Nagar to receive an OC after securing an order of Reverse Insolvency from NCLT and completing a stuck project under the supervision of IRP (Interim Resolution Professional).
The project is spread over 18.5 acres having the biggest landscape podium and world-class amenities to its allottees, RG Group’s RG Luxury Homes has achieved OC of 7 towers out of 9 which went under insolvency. The rest of the towers and project is under construction and will be delivered in different phases. Mainly, phase 1 of the project was affected due to proceedings in NCLT since September 2019 which has approximately 1918 units.
As per the process, an IRP was appointed around July 2021 for the revival of the project which was a massive task at that moment. During the process, the promoter expressed his willingness to complete the project and presented a very robust revival plan with the inclusion of finance and time-bound targets. The plan was well supported by all the stakeholders, and allottees, including financial institutions, Greater Noida authority and NCLT-appointed IRP.
In a concise span of three months, around October 2021, RG Group commenced the remaining construction and development work of the project again under the stringent supervision of all stakeholders and IRP, resulting in the completion of a stalled project.
Himanshu Garg, Director, of RG Group said, “Securing the Occupancy Certificate (O.C) of another 3 towers of RG Luxury Homes marks an important milestone for us. Now, we have OC of 7 towers comprising 1450 units and we are extending a warm welcome to our esteemed customers as they embark on their journey to a new experience. It is a testament to our hard work, dedication, and most importantly our willingness to complete the project at any cost that offers a modern-day living. Very soon remaining 460 units of phase 1 will be delivered.”
Mr Manoj Kulshrestha, IRP, said, “Looking at the present scenario of real estate projects hitting NCLT and prolonged resolution process, resolution of RG Luxury Homes was a challenging task in the certain period. But yes, this has created a history in the real estate sector and established a benchmark for others too.”
The IRP further mentioned that to complete the project as per the submitted plan, the promoters willingly sold their personal assets, collaborated with financial institutions and most importantly maintained the faith of the customers in the quickly changing working structure without compromising the quality of construction.
The group’s success can be attributed to its deep understanding of customers and focus on providing practical homes. The company has differentiated itself by incorporating distinctive designs to create an environment where the residents can actively participate, preserve, and connect with the green landscapes around them. The consistent effort to complete the project despite facing insolvency, arranging funds, and maintaining customer trust is a testament to the consumers.
Saurabh Jain, Advocate said “Reverse-CIRP which started with this case has proved to be a great success for real estate projects where the biggest sufferers are homebuyers. Though there were few hurdles initially, as IBC does not provide any specific provision for completion of the project by the promoter, however, looking at the kind of difficulties that the homebuyers had to face in the normal CIRP including but not limited to the uncertainty of completion of project, additional monetary demand by new resolution applicant, quality of construction or facilities being actually given vis-à vis what is assured under BBA etc., Hon’ble NCLAT took the initiative to devise this unique mechanism for adequate redressal of all issues pertaining to real estate project where the homebuyers have invested their life time savings for their dream home.
Mr. Jain further says, Reverse-CIRP is a win-win for every stakeholder of the corporate which is inreal estate sector. It is about time that reverse insolvency process is incorporated as the first and foremost option for resolution under IBC for any corporate dealing with real estate project as the same would not only save the valuable time for the stakeholders as well as for Tribunals/Courts, but also ensures maximum benefit to every stakeholder as compared to normal CIRP where the financial creditors have to forgo a large portion of their interest in the form of haircut and the operational creditors including the statutory authorities are usually left with nothing or negligible receivable against their actual claims towards the corporate debtor.
Kumar Mihir, advocate for the IRP in the Supreme Court says,” Thanks to the proactive approach of SC and NCLAT, this project has seen the light of the day. This hopefully will be an example that real estate projects can be revived if all stakeholders work with an open mind and have a collective approach to find the solution instead of just indulging in a blame game.
About RG Group:
The Group has successfully executed and delivered 14 Commercial & Retail Projects at prime Locations in Delhi and efficiently executed and delivered 1540 Residential Apartment covering more than 2 million square feet (sq. ft.) of construction area at its ‘RG Residency’ project situated in sector 120, Noida. The Group is currently executing the residential group housing project in NOIDA and Greater Noida (West) popularly known as Noida Extension.
