Gautam Adani's company gets key approval from NCLT for its Rs 2000 crore resolution plans for...

Gautam Adani, India's second-richest man, has been expanding his business empire since its inception. His Adani Group has a presence in several sectors such as power, ports, real estate and more. Now, the National Company Law Tribunal (NCLT) has approved the resolution plans of Adani Properties for two HDIL assets, including Project BKC in Bandra Kurla Complex and Shahad Maharal Lands in Thane district as part of its insolvency process.

Adani Properties, the sole bidder 

This was part of the corporate insolvency resolution process (CIRP), with Adani Properties being the sole bidder meeting the Insolvency and Bankruptcy Code (IBC) requirements for the two assets of Housing Development and Infrastructure Limited (HDIL).

Resolution amounts

The resolution amount for the BKC project is Rs 3 crore, while the resolution amount for Shahad Maral project is Rs 64 crore. HDIL has been undergoing insolvency since August 2019, with liabilities of around Rs 7,800 crores. The Mumbai bench of NCLT approved the resolution plans under Section 31 of the IBC, 2016, on June 27. The committee of creditors (CoC) had cleared both plans, which are valued at over Rs 2,000 crore, with a 66.08 per cent voting share in November 2022.

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Initially, HDIL's resolution professional sought interest in resolving the entire company in February 2020, but received no proposals. Due to unfinished residential properties, the National Company Law Appellate Tribunal (NCLAT) allowed a project-wise resolution plan. The CoC initially rejected this proposal, however, reversed its stance in September 2021 after objections from home buyers. Home buyers sought a stay on liquidation proceedings and a consideration of project-wise resolution, after which CoC authorised the RP to explore project-wise resolution.

(Except for the headline, this story has not been edited by DNA staff and is published from PTI)