ReaRCo acquires KV Developers through the insolvency process

New Delhi: Real estate asset resolution company ReaRCo Private Limited has acquired KV Developers through the insolvency resolution process, giving hope to nearly 400 homebuyers in Greater Noida who had invested in the project in 2013.

The firm has also secured Rs 195 crore from the government-backed SWAMIH Fund to complete the project.

“Currently, construction of 646 units across five under-construction towers is underway to enable possession for existing homebuyers by the end of the year. In terms of amenities, the project has been upgraded at multiple levels to provide comfort and facilities to the homebuyers,” said Geetanjali Khanna, founder and managing director of ReaRCo.


Launched during 2012-13, the project stalled and insolvency proceedings started in 2019. ReaRCo took over the project after its resolution plan got approved.

As per the resolution plan, the firm has cleared dues of Rs 35 crore to financial institutions and Rs 60 crore to the development authority in phases.

Nearly all homebuyers in this over-a-decade-old project have been shifted to the five under-construction towers to expedite home delivery.

About 40 homebuyers who wanted to exit from the project have been given refunds totalling Rs 10 crore.

“Construction in the five under-construction towers is over 90% complete, 74% of the funds approved by SWAMIH have been utilised and only 15% of units remain to be sold, while construction on the remaining two towers will be taken up in the future,” said Khanna.

The estimated cost of construction for the entire project is Rs 250 crore and the company is expecting revenue of Rs 500 crore.

The company is in the process to acquire more stuck projects which are going through insolvency proceedings.

“Once you take the project from NCLT (National Company Law Tribunal), usually the legal issues are resolved. There are enough stuck projects in the market which can be resolved and homebuyers can be helped,” Khanna said.