The National Company Law Tribunal (NCLT), Chennai has given nod for ₹45 crore resolution bid by home buyers to take over builder Evo Con Private Limited, under the insolvency process.
In 2019, NCLT had ordered insolvency proceedings against Evo Con in a case filed by Eden Garden Residential Owners Association, formed by the home buyers in the builder’s residential project in Mappedu, Tambaram. They moved NCLT, after there was a delay in completion of the project.
Under the process, a total of about ₹76.09 crore claims were received against the company and the liquidation value was fixed at ₹27.26 crore.
Eden Garden Residential Owners Association was the sole bidder for Evo Con and its plan was approved by the committee of creditors, with 79.06% voting in favour. The plan also pointed out if liquidation is ordered against the developer, home buyers would not even get 30% of their contribution / claim.
The homebuyers have a total claim of about ₹58.39 crore against Evo Con and as per the approved plan they would not seek reimbursement, but augment further funds to complete the Tambaram project, as per the approved plan. The resolution plan envisages augmenting ₹25.87 crore for the completion and delivery of 148 flats in the project.
Repco Home had a claim of ₹14.33 crore and will get ₹11.75 crore as per the resolution plan, through sale of personal assets given as guarantee by erstwhile promoter of Evo Con. The salary dues of ₹21.30 lakh to employees would be paid in full and the ₹1 crore would go towards the insolvency process and legal cost. The remaining would go towards settling 82% of the total claims of other financial creditors and operational creditors and other taxes, as per the approved resolution plan.
