ReaRCo Private Limited, a company specializing in real estate asset resolution, has successfully acquired KV Developers through the insolvency resolution process, providing renewed hope to nearly 400 homebuyers in Greater Noida who invested in the project back in 2013.
Additionally, the firm has secured Rs 195 crore from the government-supported SWAMIH Fund to facilitate the completion of the project. “At present, construction is ongoing for 646 units across five towers that are currently under construction, with the aim of enabling possession for existing homebuyers by the year’s end.
The project has undergone multiple upgrades in terms of amenities to enhance comfort and facilities for the homebuyers,” stated Geetanjali Khanna, the founder and managing director of ReaRCo. Initiated during 2012-13, the project faced delays and insolvency proceedings commenced in 2019. ReaRCo assumed control of the project following the approval of its resolution plan.
According to the resolution plan, the firm has settled dues amounting to Rs 35 crore to financial institutions and Rs 60 crore to the development authority in phases. Almost all homebuyers involved in this project, which has been ongoing for over a decade, have been relocated to the five under-construction towers to accelerate home delivery. Approximately 40 homebuyers who opted to withdraw from the project have received refunds totaling Rs 10 crore.
“Construction in the five under-construction towers is over 90% complete, 74% of the funds approved by SWAMIH have been utilized, and only 15% of the units remain unsold, while construction on the remaining two towers will be addressed in the future,” Khanna added. The total estimated cost for the construction of the entire project is Rs 250 crore, and the company anticipates generating revenue of Rs 500 crore.
The organization is currently engaged in acquiring additional stalled projects that are undergoing insolvency proceedings. “Typically, when you obtain a project from the NCLT (National Company Law Tribunal), the legal complications are generally settled. There exists a sufficient number of stalled projects in the market that can be addressed, thereby assisting homebuyers,” Khanna stated.
