City-based developers Ambuja, Srijan Realty, DTC Projects and MKJ Enterprise (Keventers) have submitted expressions of interest to acquire land parcels being offered as part of an ongoing corporate insolvency resolution process of Riverbank Developers Private Ltd (RDPL), the company which took up the ambitious Batanagar township project.
Arguably the largest real estate company to face bankruptcy in Bengal, RDPL used to be a joint venture between Calcutta Metropolitan Group and shoemaker Bata India before the latter exited from the JV.
The company came into existence in 2007 after the Buddhadeb Bhattacharjee-led Left Front government allowed re-development of a 262-acre riverside plot where the shoemaker had its factory and workers’ colony.
RDPL was dragged to CIRP earlier this year by Canara Bank for defaulting on loan repayment, even as HDFC Bank has the largest exposure to the company. Financial creditors have an admitted claim of ₹1,468 crore and an 83.24 per cent voting share in the committee of creditors in which homebuyers have a 11.2 per cent voting share.
The interested resolution applicants (bidders) have the option to choose one or more of the four land parcels being offered or the entire corporate debtor (RDPL). Sources said at least three interested parties, which also include a consortium of developers, have bid for all parcels that form the entire corporate debtor.
Ambuja, which had in the past conceptualised, managed and marketed a project named Usshar in association with RDPL, is understood to be interested for plots where its own project is located.
Srijan, which had launched its own project ‘The Royal Ganges’ adjacent to the Batanagar township, is understood to be interested in all parcels that form RDPL. While MKJ has shown interest in RDPL in entirety as well as the largest parcel of 28.48 acres, DTC is said to be pursuing only the largest parcel. None of the bidders showed interest for land parcels which only deal with proposed industrial park/film studio and retail development, comprising 14.81-acre land.
Debt trap
An elevated road connecting Jinzira Bazar near Taratolla to Batanagar to promote the township development appears to have led to the downfall of RDPL.
The company had entered into a concession agreement with Kolkata Metropolitan Development Authority (KMDA) in 2014 to build the flyover over Budge Budge Trunk Road on design, build, finance, operate and transfer basis.
There was an agreement between the company and KMDA that the developer would be allowed to charge tolls from users to pay for the construction of the project.
However, after completion of the project and its inauguration, it was announced that there shall be no toll fee for cars, jeeps, vans and taxis for the time being and the toll notification would be issued in consonance with what is recorded and agreed in the agreement save and except toll for cars, jeeps, vans and taxis whereas the said category of vehicles constitute the bulk of toll collection, according to the pleadings of the company before the Calcutta bench of the National Company Law Tribunal.
As a result, the company was prevented from recovering the money it had spent towards the construction of the flyover.
The financial creditor, however, successfully argued that the dispute between the corporate debtor and KMDA could not serve as a defence in this case and RDPL had accepted the existence of both debt and default.
