NCLT approves Ashdan Properties' resolution plan for Sunblink Real Estate

MUMBAI: The National Company Law Tribunal (NCLT) has approved Ashdan Properties resolution plan for Sunblink Real Estate, which had admitted creditor dues of Rs 4,018.60 crore, paving the way for the resolution of insolvency proceedings involving three sea-facing buildings in Mumbai's prime Worli area.

The properties include Rabia Mansion, Marium Lodge and Sea View, spread over 1.5 acres located along Dr Annie Besant Road near the Worli promenade. Interestingly, Sunblink Real Estate had acquired the properties from entities linked to late Iqbal Mirchi, an alleged drug trafficker and close associate of underworld don Dawood Ibrahim, in 2010 for Rs 225 crore, according to the Enforcement Directorate's investigation.

The properties and their underlying development rights are subject to proceedings under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA), and the Prevention of Money-Laundering Act, 2002 (PMLA).


The resolution plan worth Rs 143 crore was approved by the Committee of Creditors (CoC) with 100% voting share. Piramal Finance, formerly Piramal Capital & Housing Finance, was the sole secured financial creditor.

Under the approved plan, the financial creditor will receive Rs 143 crore, comprising Rs 25 crore in monetary payments and Rs 118 crore through the issuance of non-convertible debentures (NCDs). The consideration represents 3.56% of the admitted claim.

The monetary component will be paid in three instalments: Rs 5 crore within seven days of the NCLT approval, subject to adjustment towards unpaid corporate insolvency resolution process (CIRP) costs, Rs 10 crore within 30 days and another Rs 10 crore within 90 days. The NCDs will be issued in accordance with the terms of the resolution plan.

The insolvency proceedings against Sunblink Real Estate were initiated in January 2025 following a petition filed by Piramal Capital & Housing Finance over a default of Rs 845.81 crore as of November 30, 2023. The admitted claim of the financial creditor subsequently stood at Rs 4,018.60 crore.

The resolution process faced delays due to disputes over property titles and development rights, SAFEMA proceedings and due-diligence issues. The CIRP period was extended seven times, aggregating 450 additional days.

The NCLT clarified that approval of the resolution plan would not confer upon Ashdan Properties any ownership, title or development rights beyond those legally held by Sunblink Real Estate. The resolution applicant will acquire only such rights and interests as were lawfully vested in the corporate debtor, subject to their nature and enforceability under applicable laws.

The order also noted that the resolution professional had filed an application under Section 66 of the Insolvency and Bankruptcy Code concerning alleged fraudulent transactions aggregating Rs 1,606.01 crore involving Sunblink Real Estate and five amalgamated companies. The application remains pending before the tribunal.

Separately, the transaction audit had flagged alleged irregular payments of Rs 111.80 crore in connection with the acquisition of tenancy and development rights over the Worli properties. These allegations are subject to separate investigations and proceedings.