The National Company Law Tribunal (NCLT) in Mumbai has approved Mantra Properties & Developers’ resolution plan for a stalled residential project located in Worli, Mumbai. This decision marks a significant step towards reviving a development projected to yield approximately ₹2,000 crore.
The tribunal endorsed the resolution plan submitted by Mantra Properties for the insolvent Siddhi Raj Housing Projects Pvt Ltd, concluding a corporate insolvency resolution process that began in May 2023 due to a contractor’s petition.
The committee of creditors (CoC) supported the plan with a 92.97% voting share. The NCLT, in its order dated June 19, affirmed that the plan complies with all stipulations of the Insolvency and Bankruptcy Code (IBC) and mandated its binding nature on all stakeholders.
The project has the potential for about 2.2 lakh sq ft of carpet area across various phases.
According to the resolution plan, Mantra Properties will acquire complete ownership of Siddhi Raj Housing Projects, nullifying all existing shareholdings and replacing them with new equity held by the successful resolution applicant and its nominee.
The company has committed to pay over ₹91.99 crore to various stakeholders, excluding costs related to the insolvency resolution. This includes settling the admitted dues of secured financial creditors amounting to ₹52.07 crore and ₹39.48 crore to homebuyers, along with settling admitted government dues.
The CIRP cost of ₹1.54 crore will also be fully covered.
Admitted claims against the company total ₹153.82 crore out of total claims of ₹229.92 crore. Prudent ARC is the only secured financial creditor with admitted claims of ₹52.07 crore, while homebuyers hold admitted claims of ₹36.22 crore.
The approved plan promises to complete and deliver apartments to homebuyers within 48 months from the effective date. Homebuyers will also have a one-time option for a cash refund instead of receiving completed apartments.
As part of the implementation, a five-member monitoring committee, including representatives from lenders, homebuyers, the resolution applicant, and the resolution professional, will oversee the plan’s execution until management control is handed over to the restructured board.
The NCLT has also terminated the moratorium under Section 14 of the IBC and instructed the resolution professional to transfer all records and project-related documents to the successful resolution applicant.
