Ambuja Neotia Gets NCLT Nod to Revive Usshar Real Estate Project in Kolkata

According to a corporate statement on 28 December, the NCLT has approved a resolution plan that Ambuja Housing and Urban Infrastructure Corporate Ltd. (AHUICL) presented to take over and finish the stalled Usshar residential project at Batanagar near Kolkata. The National Company Law Tribunal's (NCLT) Kolkata bench's ruling represents a significant advancement in the "parcel-wise" settlement of the indebted Riverbank Developers Private Ltd (RDPL), the original developer of the 223.8-acre Calcutta Riverside project.

For several years, there had been no development activity on the Usshar project, putting hundreds of prospective homeowners in the dark. Previously involved in the project primarily as a management consultant, Ambuja Neotia has now pledged to finish the remaining development and deliver the homes to the purchasers.

What are the New Terms for Ambuja Neotia?

The 9.4-acre plot of land designated for the Usshar project would be purchased by AHUICL, a subsidiary of the Ambuja Neotia Group, for an upfront payment of INR 34 crore under the provisions of the court-approved plan. After bank loan defaults, RDPL entered the Corporate Insolvency Resolution Process (CIRP), and the resolution is expressly designed to separate this residential asset from the company's larger financial obligations.

According to Ambuja Neotia Group Chairman Harshavardhan Neotia, the permission gave a project that had experienced protracted volatility much-needed clarity and stability. He highlighted that the group's strategy is to responsibly resurrect the Usshar project, emphasising openness and consideration for all parties involved, especially the homebuyers.

Ambuja Neotia to Focus on Structured Revival Plan

According to the officials, the Ambuja Neotia Group is expected to start a structured revival strategy right away now that the NCLT requirement is in place. According to the statement, the emphasis will move to creating a clear execution timeframe and regulatory compliance under the West Bengal Real Estate Regulatory Authority (WBRERA). As per the earlier estimates, homebuyers made up about 11.2% of the committee of creditors, while financial creditors maintained an 83.24% voting stake.

The Ambuja Neotia company made it clear that the purchase was only for the Usshar project and that no other debts or obligations of Riverbank Developers were being taken on. According to realtors, this "parcel-wise" resolution approach is seen as a historic step for the local real estate market.

The tribunal has made sure that a feasible portion of the development can go towards completion without being impeded by the legal and financial complications of the entire 262-acre property by separating a single project from a mega-township. The larger township, which was initially created by redeveloping the Bata India factory property, comprises retail establishments, a golf course, and other residential phases that are still under different resolution tracks.