GURUGRAM: The National Company Law Tribunal (NCLT) has sanctioned the separation of CHD Vann from the insolvency proceedings of CHD Developers, enabling Roots Developers, the landowners, to gain full control of Vann and complete the long-delayed housing project in the city.
CHD Vann, situated in Sector 71, was initiated in March 2014 as a 10-acre residential development featuring 12 towers and 569 units of 2, 3, and 4 BHK apartments.
Initially, possession was scheduled for October 2018, but the project faced significant delays due to the financial struggles of CHD Developers, leaving many homebuyers in a tough situation with ongoing EMIs and rent payments while awaiting delivery.
The November 21 order followed an application submitted by resolution professional Rajesh Kumar Parakh and received overwhelming backing from the committee of creditors, with 95.5% voting in favor.
Due to halted construction for years, the RP requested NCLT’s approval to transfer all rights—land, licenses, assets, receivables, and approvals—entirely to Roots, free from any claims by CHD Developers’ creditors. The request was strengthened by a memorandum of understanding (MoU) signed on January 8, 2024, alongside financial agreements with the major lender Edelweiss ARC. As part of the settlement, Roots will pay Rs 22.9 crore to Edelweiss ARC to resolve its claims.
The tribunal noted that the application complied with a 2023 NCLAT order, which allowed the landowners of CHD Vann to approach NCLT for the project’s separation from the ongoing corporate insolvency resolution process.
With NCLT’s authorization, Roots can now resume construction, delivering homes to current buyers, who represent about half of the project’s 569 flats. The remaining unsold units may be marketed at current rates to finance project completion. Existing allottees will need to pay a nominal additional fee as detailed in the MoU to cover final construction expenses.
The tribunal emphasized that this segregation was vital for expediting delivery, thereby granting the RP’s application and allowing long-stuck homebuyers to finally move towards possession after years of uncertainty.
