NCLT approves Mantra Properties’ resolution plan for stalled project in Worli

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Pune-based Mantra Properties & Developers’ resolution plan for a stalled residential project in Mumbai’s Worli, paving the way for revival of a development with an estimated revenue potential of around Rs 2,000 crore.

The tribunal approved the resolution plan submitted by Mantra Properties & Developers for insolvent developer Siddhi Raj Housing Projects Pvt Ltd, bringing to a close a corporate insolvency resolution process that began in May 2023 following a petition by its contractor.

The committee of creditors (CoC) had approved the plan with 92.97% voting share. The NCLT, in its order dated June 19, held that the plan met all requirements under the Insolvency and Bankruptcy Code (IBC) and directed that it would be binding on all stakeholders.


The project has a development potential of about 2.2 lakh sq ft of carpet area across multiple phases.

Under the resolution plan, Mantra Properties will acquire 100% ownership of Siddhi Raj Housing Projects, with all existing shareholding extinguished and replaced by new equity held by the successful resolution applicant and its nominee.

The company has proposed payments aggregating over Rs 91.99 crore to various stakeholders, excluding insolvency resolution costs. These include full settlement of the admitted secured financial creditor dues of Rs 52.07 crore, payment of Rs 39.48 crore to homebuyers and settlement of admitted government dues.

The CIRP cost of Rs 1.54 crore will also be paid in full.

The admitted claims against the company stood at Rs 153.82 crore against total claims of Rs 229.92 crore. Prudent ARC was the sole secured financial creditor with admitted claims of Rs 52.07 crore, while homebuyers had admitted claims of Rs 36.22 crore.

The approved plan envisages completion and delivery of apartments to homebuyers within 48 months from the effective date. Homebuyers will also have a one-time option to seek a cash refund instead of taking possession of completed apartments.

As part of the implementation framework, a five-member monitoring committee comprising representatives of lenders, homebuyers, the resolution applicant and the resolution professional will oversee execution of the plan until management control is transferred to the reconstituted board.

The NCLT also terminated the moratorium imposed under Section 14 of the IBC and directed the resolution professional to hand over all records and project-related documents to the successful resolution applicant.