Lokhandwala Infrastructure Pvt. Ltd is the latest to go bust, its bankruptcy spoiling plans to complete the 90-floor iconic Minerva skyscraper at Mahalaxmi racecourse in South Mumbai for which the real estate developer had roped in biggie Shapoorji Pallonji Group five months ago.
Last week, the National Company Law Tribunal (NCLT) initiated insolvency resolution proceedings against the Mumbai-based developer asking its operational creditors, financial creditors, homebuyers and employees to submit their claims with proof by October 3, according to a public notice.
The tribunal hopes to conclude the insolvency resolution process by March 17, 2020, said the notice issued by insolvency resolution professional Ajit Kumar who will now take over management control of the unlisted realty firm and work with creditors to thrash out a revival plan.
Dalmia Group Holdings, one of Lokhandwala Infrastructure’s investors, had approached the tribunal after the builder failed to make quarterly payment. Dalmia Group had invested Rs 41.16 crore in the developer in lieu of two floors at its upcoming project in Lokhandwala Business Bay at Kurla Andheri Road, in the northern suburbs of Mumbai. NCLT said, "The applicant (Dalmia Group) submits that the total consideration for buying the said floors was Rs 41.16 crore, of which Dalmia Group agreed to disburse an amount of Rs 25 crore as advance with an obligation to pay the balance amount at the time of taking possession of the said floors."
The builder failed to honour its buyback agreement entered with the Dalmia Group to acquire all six units on these two floors and to pay 21% annual interest on a quarterly basis.
As a financial creditor, Dalmia Group claims dues of Rs 36.98 crore including interest, the tribunal said in its order.
Incorporated in 2006, Lokhandwala Infrastructure is the second realtor to go insolvent under the provisions of the Insolvency and Bankruptcy Code (IBC) after Housing Development and Infrastructure Ltd (HDIL), which was admitted to NCLT on August 26 following its failure to repay dues worth Rs 522 crore to Bank of India.