NCLAT orders liquidation of Lotus City in Delhi NCR

NCLAT orders liquidation of Lotus City in Delhi NCR

Ace Infracity had managed to bring on board just a fraction of the fun required to finish the residential project

A division bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of Lotus City which was to be developed on Yamuna Expressway of Gautam Budh Nagar district of Uttar Pradesh.

The residential project was to be developed by Three C Homes Pvt Ltd which had plunged into a debt crisis. NCLT had awarded the project to Ace Infracity Developers last year. NCLT bench in a ruling delivered on 10 February 2021 rejected the resolution plan given by the Ace Infracity Developers on the ground of non-compliance to the provisions of the Insolvency and Bankruptcy Code (IBC). Ace Infracity had managed to bring only a small portion of the required fund to complete the Lotus City.

Gaurav Katiyar, the interim resolution professional of the Three C Homes Pvt Ltd has been given the charge to start liquidation process. Ace Infracity had managed to bring only Rs 180.34 crore as against Rs 480.70 crore worth resolution plan approved by the Committee of Creditors.

The NCLT bench observed that this was inequitable and unjust to home buyers and cancelled the application. Ace Infracity has since announced its decision to move to the National Company Law Appellate Tribunal claiming that only a handful of home buyers had objected to the resolution application while 94 per cent of them had voted in favor of it.

Yamuna Expressway connecting Delhi with Agra is a toll road that has cut down travelling time between the national capital and one of the most sought-after tourist attractions of India. Yamuna Expressway is currently witnessing lots of activities after the Uttar Pradesh government announced building a film city on it while Delhi Capital Region's second airport at Jewar, which has been approved, is to come up on this road only.

Yamuna Expressway is the latest satellite town of Delhi coming up in Uttar Pradesh after the creation of Noida and Greater Noida. The film city and airport projects have already made Yamuna Expressway a destination for investment in real estate projects with an eye on the future.