The 300-acre project by Emerald Lands (India) Private Limited was under insolvency process and the National Company Law Tribunal (NCLT) has approved the resolution plan of Malhotra Group PLC after committee of creditors voted in their favour.
The company will invest close to Rs 1,200-1,500 crore through FDI in developing the township which include a hotel, health farm, school, golf course and villas and apartments.
“We have been doing the similar business in UK and when the opportunity came to revive a stuck project in our hometown, we decided to bid for it. Now that we have been awarded the project, we will expand our real estate presence in India and will acquire more projects,” said Meenu Malhotra, founder and chairman of the company.
About 270 homebuyers, who had booked the home about a decade ago will also get benefitted with the order. “Most of the buyers had booked the plots in 2011-12 but there has been a limited construction. Homebuyers waiting for the delivery are now hopeful with the new developer taking over,” said Kshitij Jain, authorised representative of homebuyers. According to the NCLT order, Malhotra group PLC is a public limited company incorporated under Companies Act, 2006 in England. The resolution plan provides for completion of construction of all the units that have been allotted to the homebuyers within 6-12 months from the license renewal date.
There is also a provision of refund to homebuyers up to approximately Rs 31.58 crore in case of any homeowners wishes to exit from the project and is more interested in the cash recovery as compared to getting a completed unit.
Apart from payment to financial creditors, the company has proposed to infuse Rs 80 crore in tranches for completion of Phase I of the project.
It will also infuse another Rs 65 crore for completion of the Golf Course, Club House and Community Centre.
The future development will includes a five-start hotel, retail area and an 18-hole championship golf course designed by Jack Nicklaus company, Nicklaus Design.
In addition the company is also developing 2 million sq ft of mixed use project in Ludhiana.
“This project will have a 3 lakh sq ft mall and group housing along with a hotel. We will invest about Rs 1,000 crore in the project,” Malhotra said.
The company is also developing a boutique high-street retail project for luxury brands.
“While doing these projects, we will now move to metro cities. We are looking for opportunities and ready to acquire commercial or residential assets,” said Malhotra.
