NCLT Kolkata Approves Ambuja Housing's ₹34 Crore Plan to Revive Riverbank Developers

The National Company Law Tribunal (NCLT) at Kolkata has admitted and approved Ambuja Housing and Urban Infrastructure Company Ltd.'s resolution plea against Riverbank Developers, clearing a Rs 34 crore plan to revive the insolvent real estate firm.

The decision provides a path forward for the "Usshar Project," a massive residential development involving more than 2,400 homebuyers who were affected by the company's financial distress.

A coram of Judicial Member Bidisha Banerjee and Technical Member Siddharth Mishra, in an order dated December 19, held that the plan met all requirements under the Insolvency and Bankruptcy Code and that the tribunal cannot question the commercial wisdom of lenders.

Riverbank Developers was admitted into insolvency proceedings on April 3, 2024, following a plea filed by its lender Canara Bank. Its total admitted claims stood at nearly Rs. 2358.62 crores. An initial public announcement inviting claims was issued in April 2024, and the Committee of Creditors was constituted on April 25, 2024.

Several prospective resolution applicants participated in the resolution process. The Committee of Creditors ultimately approved, with a 90.61 percent vote, the plan submitted by Ambuja Housing and Urban Infrastructure Company Ltd, an unlisted public company that forms part of Ambuja Neotia Holdings Pvt Ltd.

A letter of intent was issued in June 2025, and Ambuja Housing furnished a bank guarantee of Rs 10 crore. The approved plan provides for a total payout of Rs 34 crore, which includes CIRP costs and payments to secured financial creditors.

Several stakeholders objected to the plan, including challenges to valuation, treatment of various creditors and the scope of reliefs and waivers sought under the plan. The tribunal, however, rejected these objections and noted the value offered exceeded the liquidation value of the relevant project parcels

Reiterating the existing law, it held that its jurisdiction at the plan approval stage is limited by the statute itself. It held that it does not extend to substituting its own view for that of the lenders.

The tribunal also reiterated that upon approval, the corporate debtor is entitled to protection under Section 32A of the Code, which extinguishes all past criminal liabilities of the corporate debtor. It also clarified that former promoters and officers remain liable for offences committed before the CIRP.

The NCLT accordingly approved the resolution plan for Riverbank Developers. It directed financial creditors to invoke personal guarantees for wealth maximization and ordered the resolution professional to hand over all records, documents and premises to Ambuja Housing to ensure timely implementation of the revival plan.