In a significant development for the real estate sector of the National Capital Region, the RG Group has successfully obtained the occupancy certificate for the last two towers of its group housing project in Greater Noida West. This milestone marks the completion of the first phase of RG Luxury Homes in Sector 16B, with all 1,918 flats now officially cleared for possession.
A Project Revived from Insolvency
The journey to completion was far from smooth. The project had been stalled since 2019 after slipping into insolvency. Its revival began in October 2021 through a unique reverse insolvency process supervised by an interim resolution professional appointed by the National Company Law Tribunal (NCLT). This process became a model for resolving stuck real estate developments.
Occupancy certificates for other towers were granted in phases. In February 2024, clearance was received for 854 flats in towers A, B, C, and M. This was followed by approvals for 600 flats in towers D, E, and F in November. The latest approvals for towers G and H pave the way for the registry and possession process to begin shortly for the remaining 464 flats, ending a years-long wait for anxious homebuyers.
Financial Resolve and a New Benchmark
Interim resolution professional Manoj Kulshrestha stated that the project's resolution has set a "benchmark" for stalled developments. He highlighted the critical role of promoters who mobilized funds, even through the sale of personal assets, to ensure construction reached the finish line. Kulshrestha emphasized that strict adherence to timelines was crucial in restoring confidence among both buyers and financial lenders.
The financial figures involved are substantial:
- Construction costs for Phase 1 post-NCLT intervention stood at around Rs 200 crore.
- Refunds totaling approximately Rs 95 crore were issued to homebuyers following the insolvency proceedings.
- The promoter infused about Rs 43 crore, while banks contributed around Rs 27 crore towards construction.
The project's dues to the Greater Noida Authority after the NCLT process were estimated at about Rs 200 crore, of which roughly Rs 60 crore has been paid so far.
A Framework for Future Revivals
Legal experts involved in the process noted that the successful completion of RG Luxury Homes under the Supreme Court-monitored reverse insolvency framework demonstrates a viable path forward. It shows how coordinated oversight can effectively revive stalled housing projects while balancing the often-competing interests of homebuyers and creditors.
RG Group director Himanshu Garg confirmed that the possession process is already underway in several towers and will soon commence for towers G and H as well. This closure brings not just physical homes to buyers but also restores faith in a system designed to protect their investments.
The story of RG Luxury Homes stands as a testament to perseverance, structured legal intervention, and a commitment to delivering on promises, offering a blueprint for resolving similar challenges across India's real estate landscape.
