NCLAT upholds Adani Goodhomes bid with 93% haircut for Radius Estate

It was reported that the Mumbai bench of the National Company Law Tribunal (NCLT), on January 9, 2022, had approved the resolution plan of Adani Goodhomes, a part of Adani Realty.

According to the resolution plan, which had received 83.99% of the vote of the CoC and was approved by NCLT, nearly 700 flat owners were to get possession without an escalation of any price.

The plan faced opposition from two dissenting financial creditors?Beacon Trusteeship and ICICI Prudential Venture Capital Fund Real Estate?before the National Company Law Appellate Tribunal (NCLAT).

Reports indicated that Adani Goodhomes had proposed to pay around ?76 crore against total claims of Rs 17 billion. However, it had assured to complete the construction of the project.

The dissenting financial creditors moved the NCLAT, contending it to be unfair and inequitable as it provides a 93% haircut to their claims.

On the other hand, it provides 100% recovery to homebuyers by way of allotted units in the project without them having to bear any haircut or price escalation.

Rejecting this, the NCLAT stated that it was the 'commercial wisdom' of the CoC, which had approved the payout to different creditors. It also rejected the claims of violation of Section 30, sub-section (2) of the Insolvency & Bankruptcy Code (IBC).

The dissenting financial creditors had alleged that the liquidation value of the assets of Radius Estate was grossly undervalued, and the valuation report suffered from material irregularities.