In yet another case of reverse insolvency, 1,700 homebuyers of RG Luxury Homes are all set to get their dream homes delivered after almost three-year-long litigation. The project by RG Group located at Sector 16B, Greater Noida West was dragged into the National Company Law Tribunal (NCLT) by a few homebuyers in September 2019.
The project is spread over 18.5 acres having 13 residential towers comprising 2 and 3-BHK flats and was launched around 2012 while the delivery was promised in 2016. However, when the developer failed to deliver the project even after seven years, some buyers filed a case in the NCLT in 2019. As per the process, an IRP was appointed and the process had begun around July 2021. However, the promoter itself submitted a resolution process which was approved and construction resumed from August onwards.
The developer said that approximately 800 units are ready for fit-outs and another 900 units will be ready in upcoming quarters. The builder has applied for Occupation Certificate (OC) a month ago and said that it's expected to receive the OC soon.
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There were a total of 1,920 flats in phase 1 of the project out of which 1,700 were sold and went into insolvency. Manoj Kulshrestha, Interim Resolution Professional in the case said that a hybrid kind of order rescued the project and the home buyers. "We began the process around July 2021 and now with all our hard work, we are on verge of offering possession which itself is a milestone for the Delhi-NCR region as it’s the first and one of its kind project in the vicinity that will offer possession under any appointed IRP," he said.
One of the buyers who took the keys for fit-outs on September 8 said that it was a nightmare for him when the project got into the NCLT due to delay. "The Reverse Insolvency process paved way for completing the construction of the project. The homebuyers played a crucial role as they opted for the delivery of the flats rather than prolonging litigations," said Umesh Narang, one of the homebuyers.
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Himanshu Garg, Group Director from RG Group thanked homebuyers for the support. "Due to adverse market conditions and various factors, the project got delayed but now with the support of all the stakeholders, we have applied for OC in a few of the towers (Tower - A, B, C, M) and we will be applying for the OC for rest of the towers in the coming quarters," said Garg.
The RG Group has so far delivered 14 commercial & retail projects in Delhi and delivered 1,540 residential apartments covering more than 2 million square feet of construction area at its ‘RG Residency’ project situated in sector 120, Noida. The Group is also executing a residential group housing project in NOIDA and Greater Noida (West) where the built-up area is about 4 million sq. ft.
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