MUMBAI: The bankruptcy court in Mumbai has sanctioned the acquisition of a Nirmal Lifestyle project in Mulund, spanning four acres, by Pune-based Mantra Properties.
This project, which has a total development potential of approximately Rs 1,900 crore, was initiated by Nirmal Developers in 2017. The company has liabilities amounting to Rs 1,491 crore, while the bidder has proposed Rs 215 crore as part of the resolution plan.
“The approval of the resolution plan will not invalidate any existing consents, approvals, licenses, concessions, authorizations, or permits granted to the corporate debtor, or for which the debtor has applied for renewal,” stated the judicial bench led by Lakshmi Gurung and technical member Hariharan Neelakanta Iyer while endorsing the revival plan.
The corporate insolvency resolution process (CIRP) for the company began in July 2023 following a petition from Beacon Trusteeship Ltd. It has two secured creditors: Beacon Trusteeship, holding Rs 902 crore (60.54% of the creditor committee), and Assets Care and Reconstruction Enterprise Ltd, with Rs 589 crore (39.46% share).
“We aim to complete the Mulund project and cater to the needs of existing homebuyers. This marks our second project in Mumbai, following our acquisition of an 8.5-acre project in Jogeshwari,” said Rohit Gupta, managing director of Mantra Group.
About 15 real estate developers expressed interest in the project, leading to three final resolution plans submitted to the resolution professional, including the winning bid from Mantra Properties. The other bids came from Vasavi Realty and Sardarmal Prithviraj Constructions, in collaboration with Dharmesh Sardarmal Jain, a former promoter of the corporate debtor.
Ruchi Khatlawala, a partner at law firm Little & Co, noted that developers are keen on acquiring brownfield real estate firms with prime land in Mumbai. “When a company is under CIRP, conducting due diligence on their financial records, land titles, and lease agreements becomes more straightforward, making such opportunities attractive for developers,” she added.
The project was designed with four towers covering 754,000 sq ft, of which 114,000 sq ft has already been sold to 235 buyers, who paid Rs 50 crore for homes valued at Rs 230 crore.
