In a major development for homebuyers in Noida’s Sector 79, the National Company Law Tribunal (NCLT) has given the green light to Purvanchal Projects Private Limited to take over the Lotus Arena housing project. The decision comes after the original developer, Arena Superstructures Private Limited, failed to complete and deliver the project on time, leading to a prolonged delay.
Lotus Arena, situated on 12.5 acres along the 29.7km Aqua Line of the Noida Metro, is an integral part of Noida’s Sports City project. The development was originally envisioned to consist of 1,080 flats across nine towers, out of which 858 have already been sold to buyers. However, due to mismanagement, slow progress, poor monitoring, and a slowdown in the real estate sector, the project suffered a seven-year setback. This caused immense frustration and hardship for the affected homebuyers.
The resolution process commenced on November 4, 2020, with Pawan Kumar Singal appointed as the interim resolution professional (IRP). Later, on June 9, 2021, Ayyagari Viswanandha replaced Singal in this role. Subsequently, the committee of creditors (CoC), consisting of homebuyers, banks, contractors, and other stakeholders, was formed on December 2, 2020, to determine the project’s future course of action.
After evaluating 17 proposals from various realty firms in Noida and Greater Noida, the CoC approved the resolution plan submitted by Purvanchal Group on July 9, 2022. Following this endorsement, the plan was formally submitted to the NCLT on July 16, 2022, and was subsequently approved on the given date.
The resolution plan, amounting to ₹584 crore, has now been given the official nod. As stated in the NCLT order delivered by Ramalingam Sudhakar, President, NCLT, and Avinash K Srivastava, Member (Technical), the plan is binding on all parties involved, including the corporate debtor, and is set to take immediate effect.
The buyer’s association, represented by Vishwanath Sharma, President of the Lotus Arena Buyers Association, expressed relief and hope after the NCLT’s decision. Sharma emphasized the buyers’ long-standing struggle, spanning nearly a decade, and expressed optimism that the new developer, Purvanchal Projects, will adhere to the timelines outlined in the resolution plan and finally deliver the much-awaited project.
Purvanchal Projects Private Limited’s Chairman and Managing Director, Shah Alam, expressed gratitude for being selected from among 17 realty firms and assured buyers of the group’s commitment to completing the project within the next 36 months. Alam stressed that the company is renowned for delivering quality projects on time, and they plan to uphold this reputation with Lotus Arena as well.
The resolution plan’s approval signals a ray of hope for the homebuyers of Lotus Arena, who have been waiting for years to see their dreams turn into reality. With Purvanchal Group taking over the project, the anticipation is high that the development will now gain momentum and finally be completed, bringing joy and relief to the long-awaiting homeowners.