NCLT approves Ambuja Neotia's acquisition of stalled Usshar project
Ambuja Neotia Secures NCLT Approval for Usshar Project Revival
Ambuja Housing and Urban Infrastructure Company Ltd (AHUICL), the housing arm of Ambuja Neotia Group, has received approval from the National Company Law Tribunal (NCLT) to take over the Usshar project at Batanagar, spanning approximately 9.4 acres. As part of the approved plan, Ambuja Neotia will make an upfront payment of Rs 34 crore, with the acquisition limited strictly to the Usshar project.
Background: A Long-Stalled Development
The decision by the Kolkata bench of the NCLT marks a breakthrough in the parcel-wise resolution of the debt-ridden Riverbank Developers Private Ltd (RDPL), the original promoter of the 223.8-acre Calcutta Riverside township. Riverbank Developers was formed initially through a joint venture between Bata India and Calcutta Metropolitan Group for the project, with Bata exiting the real estate venture in 2022 and Riverbank subsequently entering NCLT proceedings.
The Usshar project had been in a state of limbo for several years with no progress in construction, leaving hundreds of homebuyers in uncertainty. The Usshar project forms part of a larger township spanning around 223.8 acres.
Acquisition Structure and Creditor Support
The Ambuja Neotia group clarified that the acquisition was strictly limited to the Usshar project and did not involve the assumption of any other liabilities or debts of Riverbank Developers. Financial creditors held an 83.24 per cent voting share in the committee of creditors, while homebuyers accounted for approximately 11.2 per cent. Ambuja Group was the sole bidder for the Usshar portion.
Revival Plan and Regulatory Focus
As per the resolution plan, Ambuja Neotia Group will commit to completing the Usshar residential project and delivering homes to its existing buyers. The focus will shift to regulatory compliance under the West Bengal Real Estate Regulatory Authority (WBRERA) and establishing a clear execution timeline.
Harshavardhan Neotia, Chairman of the Ambuja Neotia Group, said that the approval provides much-needed clarity and stability to a project that had remained in limbo for a long period, emphasizing that the group intends to revive Usshar in a responsible and transparent manner, keeping the interests of all stakeholders, particularly homebuyers, at the forefront.
Project Details and Location
The complete address of Usshar is 1 New Bata Road, Maheshtala, Batanagar, Thakurpukur Maheshtala, South 24-Parganas, Pin 700140, Kolkata, West Bengal. The project comprises 12 towers with G+31 floors.
The Batanagar area is served by the Batanagar Flyover, also known as the Sampriti Flyover, spanning 7.5 kilometres and connecting the area with Jinjira Bazaar. Batanagar's strategic location within Calcutta Riverside, with upcoming metro connectivity and proximity to essential services, underscores its potential for providing a comfortable and convenient lifestyle for its residents.
Sector Implications
The parcel-wise resolution strategy is being viewed as a landmark move for the regional real estate sector, ensuring that a viable segment of the development can move toward completion without being held back by the legal and financial entanglements of the entire site. The resolution has received an overwhelmingly positive reaction in the Kolkata property sector, especially in the case of halted housing projects proceeding with insolvency resolution, indicating that parcel-by-parcel resolution under the IBC has the potential to allow successful developers to revitalize distressed property.
Ambuja Neotia Group's journey started more than two decades ago in Kolkata with a simple mission to make a difference to the way people live by creating homes that are part of a neighbourhood. This acquisition extends the group's track record into the specialized domain of distressed asset resolution and buyer protection within the insolvency framework.