NCLT approves Oberoi Constructions acquisition of Nirmal Lifestyle Realty

The National Company Law Tribunal (NCLT) has approved the resolution plan proposed by an affiliate of listed property developer Oberoi Realty to acquire real estate development firm Nirmal Lifestyle Realty. The resolution plan of Oberoi Constructions involves paying around Rs 273 crore to financial, operational, and other creditors. The company was admitted into the corporate insolvency resolution process (CIRP) in December 2021 with claims amounting to over Rs 748 crore. 
The NCLT has also mandated that the scheme of arrangement and amalgamation between Nirmal Lifestyle Realty and Oberoi Constructions be filed separately for formal approval. Although elements of this scheme are incorporated into the resolution plan, it must undergo distinct procedural scrutiny. The ruling also includes provisions for the transfer of records and documents to Oberoi Constructions and the continuation of the monitoring committee. The committee will oversee the resolution process to ensure compliance and smooth transition during the takeover period. This decision by the NCLT not only addresses the immediate financial distress faced by Nirmal Lifestyle Realty but also sets a precedent for corporate restructuring under the Insolvency and Bankruptcy Code (IBC). By approving the resolution plan, the tribunal emphasises the importance of regulatory adherence and structured resolution processes in managing corporate insolvency.
 

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