NCLT approves the takeover of Anudan Properties by KGK Realty

The bankruptcy court of India has authorised Mumbai based developer KGK Realty to purchase Anudan Properties (India). The resolution plan for KGK Properties received 76.35% of the vote from the Committee of Creditors (COC). Several developers had also submitted resurrection ideas for the company including Aanya Real Estate, a group of Ashdan Properties, and NNP Buildcon. The development is a sign of an increasing trend of various established developers looking for real estate deals through the bankruptcy process and having strong financials.

According to the Insolvency & Bankruptcy Board of India's (IBBI) most recent data, 6,199 entities were placed under administration through the end of September. Over 1,240 of these businesses were in the real estate industry. Statistics indicate that bidders have submitted resolution proposals to around 805 of these real estate entities.

In this case, the tribunal had chosen the bankruptcy resolution professional and admitted the company under the insolvency process in March 2021. The COC's first gathering took place in April 2021. A total of 148 claims totalling about 271 crores were made against the corporation to the resolution professional. Out of 148 claims only 125 were admitted totalling more than 236 crores.

Anudan Properties' claimed project will now be completed by KGK Realty (India), as part of its resolution strategy. To ensure that homebuyers receive their houses on schedule and that the corporate debtor is operated and managed as a going concern, it has committed to begin the Thane Project's construction after the COC's approval. For incurring the cost of the Thane project and getting approvals for the start of construction at the Thane project, KGK Realty (India) may potentially offer funds in the form of interim finance.

As demand for both residential and commercial properties is increasing, several buyers and investors are actively looking for real estate businesses with sizable land lots that are currently going through bankruptcy administration due to loan defaults. The resolution plan put out by Adani Good Homes for the city's developer Radius Estate was accepted in January by the Mumbai bench of the National Company Law Tribunal (NCLT). The resolution plan of Max Estate's Boulevard Projects was also accepted by the bankruptcy court's New Delhi bench, opening the path for the residential development "Delhi one" to resume construction.

Next (GHMC tax collections increase by 10% but fall short of year-end target)

NCLT approves the takeover of Anudan Properties by KGK Realty

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