Supreme Court Approves Alpha Corp's Acquisition of Stalled Real Estate Projects
Alpha Corp to take over three stuck projects following Supreme Court approval
The Economic Times
Image: The Economic Times
The Supreme Court of India has approved Alpha Corp Development's resolution plan to acquire three stalled projects from Earth Infrastructures Limited, including commercial developments in Greater Noida and a residential project in Gurgaon. This ruling aims to expedite the completion of these projects, which have affected over 3,000 homebuyers since 2011.
- 01The Supreme Court overturned a previous NCLAT ruling, allowing Alpha Corp to proceed with the acquisition.
- 02Alpha Corp plans to invest approximately ₹750 crore (roughly $90 million USD) to complete the projects.
- 03The projects include two commercial developments in Greater Noida and a residential project in Gurgaon.
- 04Over 60% of the commercial space has been sold, with significant financial distress impacting buyers since 2011.
- 05The ruling is expected to provide relief to homebuyers and set a precedent for resolving similar real estate issues in the National Capital Region.
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The Supreme Court of India has set aside a previous order from the National Company Law Appellate Tribunal (NCLAT), allowing Alpha Corp Development to acquire three stalled projects from Earth Infrastructures Limited. These projects include two commercial developments, 'Earth TechOne' and 'Earth Sapphire Court', in Greater Noida, and a residential project, 'Earth Copia', in Gurgaon. The court emphasized the urgency of completing these projects to prevent further prejudice to over 3,000 homebuyers who have faced delays since 2011. Alpha Corp is mandated to clear dues within 24 months without passing financial burdens onto homebuyers. The company plans to invest about ₹750 crore (roughly $90 million USD) for completion and upgrades, with a projected revenue potential of ₹1,200 crore (approximately $145 million USD). The ruling also allows the Greater Noida Industrial Development Authority to recover only its principal dues, waiving penalties due to its prolonged inaction. This decision is seen as a significant step toward resolving long-standing real estate issues and restoring confidence in the insolvency resolution framework.
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This ruling is expected to expedite the completion of stalled projects, providing relief to homebuyers who have been paying EMIs for years without receiving their properties.
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