NOIDA: The insolvency resolution professional (IRP) for Granite Gate company, the 3C subsidiary that is building the Lotus brand of housing projects, is yet to finalise a contractor to complete all pending flats, but has invoked Section 20 of the Insolvency and Bankruptcy Code (IBC) to initiate work at seven of 19 towers in Lotus Panache. The seven towers have approximately 700 flats.

The IRP has so far received five applications from contractors for work on these towers and is likely to select one by the end of July. Investors will be themselves pay for the completion work.

IRP Chandra Prakash told TOI, “We are pleased to announce that as a team we are able to help Lotus Panache buyers to commence work on their flats. Unfortunately, the construction of Lotus Boulevard flats can’t start now as we have detected some fraudulent activity by an erstwhile contractor through a forensic report and we are still resolving the issue. A new contractor will have to be brought on board.”

Sahil Sethi, the lawyer representing Lotus Panache Welfare Association, said, “IBC allows the IRP to run the company as an ‘ongoing concern’. Being a real estate company, running it as a concern means carrying out construction as well. The IRP has issued the work order after voting and approval of the committee of creditors.”

Homebuyers expect the flats to be completed by year-end. “These 700 flats are likely to be ready in the next 6-7 months. This is a respite for buyers whose flats are in the last stages of construction. The rest of the construction too should be complete in 2-3 years once a construction company is engaged,” said Amit Chauhan, president of the Lotus Panache Welfare Association (LPWA).

The five applicants who have submitted expressions of interest are SMV Agencies Pvt Ltd, E-Homes Infrastructures Pvt Ltd (Dasnac), Panchtatva Promoters Pvt Ltd, Purvanchal Projects Pvt Ltd and UV Assets Reconstruction Co. Pvt. Ltd. The first IRP for Granite Gate, Parabhjit Soni, was replaced by Prakash in November 2019.

Lucknow: Hours after the ED was given seven-day custody of Amrapali Group of Companies’ auditor, Anil Mittal, he tested positive for Covid on Tuesday. While Mittal, who was on bail and arrested again on Monday, has been admitted to the isolation ward of KGMU, Lucknow, ED’s Lucknow unit has been closed for three days and four officials quarantined.

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