NCLT Approves ₹1,048.95-Crore Plan For Spenta Enclave

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved a resolution plan of ₹1,048.95 crore for Spenta Enclave Pvt Ltd, a real estate company that has been undergoing insolvency proceedings since March 2023.

The plan, which was submitted by a consortium led by Aspan Loveji Cooper, Rajiv Suryakant Shah, and Surinderkumar Bansilal Sharma, provides for the completion of all pending phases of the project and the handing over of possession of the respective units to the homebuyers.

Approximately 300 homebuyers, whose admitted claims amount to ₹264.29 crore, are to receive their respective flats under the approved resolution plan. The plan also provides that no additional amount shall be charged from the homebuyers and that the terms and conditions relating to payment shall remain the same as stipulated in their respective Agreements for Sale.

The resolution professional (RP) received claims from 309 allottees, who are financial creditors in a class/homebuyers. Claims of approximately 300 allottees, aggregating to ₹264.29 crore, were admitted. The majority of the claims relate to phases that are incomplete and at an early stage of construction.

The successful resolution applicant (SRA) has proposed to complete all pending phases and hand over possession of the units to the homebuyers. However, the plan stipulates that, apart from delivery of the units within the timelines prescribed under the resolution plan, homebuyers shall not be entitled to any interest, compensation, or penalty on account of delayed possession or non-delivery of white goods.

The plan submitted by the SRA was approved by the Committee of Creditors (CoC) with a 92.87% voting share. The project, which comprises nine towers, four of which had already been completed and handed over to allottees when the insolvency process began, is located on leasehold land at Altavista Sales Building, near Lal Dongar, Chembur.

Under the approved plan, the consortium has proposed a total fund infusion of ₹537.12 crore. This includes ₹150 crore from JM Financial Asset Reconstruction Company Ltd.

The approval of the resolution plan is a significant development for the homebuyers who have been waiting for the completion of their flats. The plan provides a clear roadmap for the completion of the project and the handing over of possession of the units to the homebuyers.

The NCLT's approval of the resolution plan is also a positive development for the real estate sector, which has been facing significant challenges in recent years. The approval of the plan demonstrates the effectiveness of the insolvency and bankruptcy code in resolving stressed assets and providing relief to homebuyers.

In conclusion, the approval of the resolution plan for Spenta Enclave is a significant development for the homebuyers and the real estate sector. The plan provides a clear roadmap for the completion of the project and the handing over of possession of the units to the homebuyers, and demonstrates the effectiveness of the insolvency and bankruptcy code in resolving stressed assets and providing relief to homebuyers.