MUMBAI: The National Company Law Tribunal (NCLT) has given the green light to Adani Properties for the acquisition of two assets from the insolvent Housing Development and Infrastructure (HDIL) as part of the corporate insolvency resolution process (CIRP).
The acquired assets include a commercial property named ‘Inspire BKC’ located in Mumbai’s Bandra-Kurla Complex and a piece of land situated in Kalyan Shahad on the outskirts of Mumbai.
Adani Properties was identified as the sole bidder submitting a proposal compliant with the Insolvency and Bankruptcy Code (IBC) for both assets.
The resolution plan for the Inspire BKC project is appraised at Rs 3 crore, which includes Rs 2.85 crore allocated to creditors and Rs 15 lakh designated for CIRP expenses. The Shahad land parcel has a fair value estimated at Rs 89.66 crore and a liquidation value of Rs 62.76 crore.
Experts in the industry believe these assets in central Mumbai and Kalyan are collectively valued at over Rs 2,000 crore.
The Mumbai bench of the NCLT sanctioned the resolution plans for both projects under Section 31 of the IBC, 2016, with the Committee of Creditors (CoC) approving both plans by a 66.08% voting share in 2022. The voting process concluded in November 2022.
HDIL, which is promoted by Rakesh Wadhawan, has been undergoing insolvency proceedings since 2019, with admitted liabilities exceeding Rs 7,789 crore.
Initially, the resolution professional sought expressions of interest for the entire company in February 2020 but did not receive any proposals. Given the presence of several incomplete residential projects, the National Company Law Appellate Tribunal (NCLAT) permitted a project-wise resolution approach.
The CoC had first rejected this project-wise proposal, but after receiving objections from homebuyers, it changed its decision in September 2021, allowing the resolution professional to pursue this method.
As a result, HDIL was segmented into 10 verticals to streamline the resolution process.
Approved assets for Adani Properties encompass verticals V and IX.
For Vertical V, the Inspire BKC project, Adani’s plan outlines that it will not acquire HDIL as a going concern; instead, it plans to demerge the BKC project into itself or a subsidiary. Furthermore, Adani has agreed to uphold the existing Slum Rehabilitation Authority (SRA) development agreement with Budhpur Buildcon.
Budhpur Buildcon now represents Adani’s interests and holds the Letter of Intent for the slum rehabilitation project initially initiated by HDIL in BKC, tasked with completing the rehabilitation under SRA supervision.
Regarding Vertical IX, the Shahad land parcel, the sole secured creditor with mortgage rights is Punjab and Maharashtra Cooperative Bank, now known as Unity Small Finance Bank. In July 2024, the tribunal dismissed the bank’s objections concerning the valuation.
Both resolution plans require performance guarantees of Rs 5 crore each, as stipulated by CIRP regulations.
As of press time on Tuesday, RealtyDailyNews’s inquiry to Adani Group had not received a response.
