GREATER NOIDA WEST – After a six-year delay, 600 homebuyers of RG Luxury Homes in Greater Noida West are set to receive possession of their apartments, following the Greater Noida Authority’s issuance of an occupancy certificate (OC) for three additional towers.
As reported by Hindustan Times, the project—stalled since 2016 due to a financial crisis—is the first in Gautam Buddh Nagar to secure an OC under reverse insolvency.
The real estate firm has now obtained OCs for a total of seven towers, with two more under construction. The first phase of the project consists of nine towers, with a total of 1,918 units. This development marks a significant milestone in the resolution of stalled real estate projects through the NCLT’s Reverse Insolvency Resolution Process, which was initiated under the supervision of an Interim Resolution Professional (IRP), the company said.
The Reverse Insolvency Resolution Process is a provision within India’s Insolvency and Bankruptcy Code (IBC) that allows corporate debtors to initiate their own resolution process. This mechanism enables developers to revive stalled real estate projects by infusing fresh funds and completing construction under the supervision of an IRP.
RG Group announced it has completed construction and necessary formalities for another phase of RG Luxury Homes and secured an OC for Towers D, E, and F. The group is now set to hand over possession to 600 homebuyers. Last year, it obtained OCs for Towers A, B, C, and M, covering 850 units.
The 18.5-acre project, located in Sector 16B of Greater Noida West, originally launched in 2010 with an initial completion deadline of 2014. However, financial constraints halted construction in 2016. In 2019, a group of homebuyers petitioned the National Company Law Tribunal (NCLT), which issued a reverse insolvency order in February 2020, directing RG Group’s promoter to complete the project under IRP supervision.
Construction resumed in October 2021 under the IRP’s oversight, and in February 2022, the Greater Noida Industrial Development Authority (GNIDA) granted OCs for 854 flats across four towers.
The remaining two towers in the first phase are under construction and will be delivered soon, according to the company.
Himanshu Garg, director of RG Group, described the latest OC approval as a key milestone. “We now have occupancy certificates for seven towers, covering 1,450 units. The remaining 460 units from Phase 1 will be delivered soon,” Garg said.
Manoj Kulshrestha, the IRP overseeing the project, acknowledged the challenges in resolving stalled real estate developments through insolvency proceedings. “Given the current trend of real estate projects entering NCLT and facing lengthy resolutions, achieving a positive outcome for RG Luxury Homes was a difficult task,” he said.
Saurabh Jain, an advocate representing the real estate firm, highlighted the success of reverse CIRP, which was first implemented in this case. “Initially, the IBC lacked specific provisions for project completion by the promoter. However, the National Company Law Appellate Tribunal (NCLAT) recognized the hardships homebuyers face under the conventional CIRP framework,” Jain said.
Kumar Mihir, the IRP’s advocate in the Supreme Court, expressed optimism that this case would set a precedent for stalled projects. “If all stakeholders adopt a collaborative approach instead of engaging in a blame game, real estate projects can be revived,” Mihir said.
RG Group has completed 14 commercial and retail developments and delivered 1,540 apartments, spanning more than 2 million square feet in Noida’s Sector 120. The company is also working on additional residential projects in Noida and Greater Noida West, commonly known as Noida Extension.