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The Yamuna Expressway Authority (YEIDA) has announced its intention to challenge the National Company Law Tribunal's (NCLT) approval of a resolution plan for the residential plots project known as Lotus City in Sector 22. The decision came after a two-member bench at NCLT, comprising Atul Chaturvedi and Bachu Venkat Balram Das, expressed satisfaction with the resolution plan submitted by Ace Infracity Developers, which was deemed compliant with the Insolvency and Bankruptcy Code (IBC) and regulations of the Insolvency and Bankruptcy Board of India (IBBI). The plan had received unanimous approval from the Committee of Creditors (CoC).
YEIDA had previously raised objections to the resolution plan in the NCLT due to outstanding dues. However, the NCLT dismissed these objections, leading YEIDA to seek further action. CEO Arun Vir Singh confirmed that the decision to file an appeal with the National Company Law Appellate Tribunal (NCLAT) was made during YEIDA's 77th board meeting on June 26. The aim of the appeal is to safeguard YEIDA's interests and ensure that the resolution plan aligns with their expectations. The legal department, along with other relevant departments, has been directed to initiate the appeal process by the deadline of July 12.
YEIDA's main contention is that Ace Group, the acquiring party, has paid a significantly lower amount of Rs 67.12 crore towards dues for the acquisition of nearly 100 acres of land. Additionally, YEIDA argues that Ace Group has not fulfilled its obligations according to the lease deed, which amounts to Rs 506 crore. However, the NCLT order upheld the Rs 67 crore payment as an adequate settlement for compensating the farmers affected by the project.
In a detailed 26-page order, the NCLT expressed satisfaction with the resolution plan, stating that it adequately addressed all concerns regarding YEIDA's dues and land acquisition. The NCLT's decision has brought a sense of relief to the more than 500 allottees of Lotus City, many of whom have been waiting for their plots for 12 years.
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