Good news for 1,700 homebuyers as new order paves way for delivery of RG Luxury Homes

After a nearly three-year legal battle, 1,700 homebuyers of RG Luxury Homes are prepared to receive their dream homes. This is yet another instance of reverse insolvency. A few prospective homebuyers brought the RG Group project in Sector 16B, Greater Noida West, to the National Company Law Tribunal (NCLT) in September 2019. 

Accoring to money control, the project, which spans 18.5 acres and consists of 13 residential towers with 2 and 3 bedrooms, was announced in 2012, with delivery scheduled for 2016. However, some purchasers filed a claim at the NCLT in 2019 when the developer still hadn’t delivered the project despite waiting seven years. According to the procedure, an IRP was chosen, and things got started around July 2021. Construction, however, restarted in August after the promoter submitted a resolution process that was accepted. 

According to the developer, 900 additional units will be ready in the next quarters, leaving about 800 units available for fit-outs. The builder stated that it submitted an application for an occupation certificate (OC) a month ago and that it anticipates receiving the OC soon. 

Phase 1 of the project consisted of 1,920 flats in all, 1,700 of which were sold and entered bankruptcy. A hybrid type of ruling saved the project and the homebuyers, according to Manoj Kulshrestha, the interim resolution professional in the case. “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 mentioned. 

One of the purchasers who received the keys for the fit-outs on September 8 claimed that the project entering the NCLT as a result of the delay was a nightmare for him. “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,”  according to one of the homebuyers, Umesh Narang. 

Homebuyers were thanked by Himanshu Garg, Group Director at RG Group, for their assistance. The project was delayed as a result of unfavourable market conditions and other factors, but with the help of all the stakeholders, Garg stated, “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.”  

In addition to completing 1,540 residential apartments totalling more than 2 million square feet of construction at its “RG Residency” project in Noida’s sector 120, the RG Group has already completed 14 commercial and retail projects in Delhi. The Group is also working on a residential group housing project with a built-up area of roughly 4 million square feet in NOIDA and Greater Noida (West).