The Yamuna Expressway Industrial Development Authority dropped its appeal before the National Company Law Appellate Tribunal against an order that allowed Ace Infracity's bid for Three C Homes. This step resulted from developers' approval to compensate farmers. In January 2021, the YEIDA had canceled the land allotment that was challenged by Three C Homes before NCLT. In January 2023, the court restored land allotment and approved the resolution plan proposed by developers in June 2023. During the bid approval, the court noted that the developers had been approved by the Committee of Creditors, a decision that YEIDA challenged.
The Yamuna Expressway Industrial Development Authority withdrew its appeal against an order that gave green signal to the Ace Infracity's bid for Three C Homes. The appeal was made before the National Company Law Appellate Tribunal against a National Company Law Tribunal order, which was dropped by YEIDA after Ace Infracity Developers' agreed to compensate farmers.
According to a media report, YEIDA offered the compensation proposal to Ace Infracity on 4 July, which the latter accepted during a hearing before NCLAT. The National Company Law Appellate Tribunal (NCLAT) noted that, in view of the acceptance of the proposal by the SRA (Ace Infracity), the appellant (YEIDA) is not to proceed with its appeal, subject to compliance with the conditions indicated in the communication dated July 4, 2024, which was given to the counsel for the SRA. Recording this, the tribunal concluded that no useful purpose would be served in continuing with the appeals and permitted the appeal to be withdrawn with the liberty to revive.
Earlier in January 2021, YEIDA had canceled the land allotment, which was challenged by Gaurav Katiyar, resolution professional of Three C Homes, before NCLT. The NCLT restored the land allotment in January 2023, followed by approval of the Resolution plan proposed by the Ace Infracity in June 2023. Additionally, while the bid approvals, NCLAT did not consider YEIDA's objections and discovered that the INR 67 crore brought in by the corporate debtor was sufficient to settle their dues. This order was challenged by the YEIDA before NCLAT.
In September 2019, the corporate Insolvency Resolution Process began against Three C Homes. Ace Infracity's INR 140.39 crore resolution plan was approved by the NCLAT on June 13, 2023. As per Form-H filed with the application, the fair value of the Corporate Debtor is INR 600.87 crore and the liquidation value of INR 489.70 crore.
Furthermore, the media report stated that while approving the bids of Ace Infracity, the court stressed that Ace Infracity Developers had been approved by the Committee of Creditors with 100 percent votes and cannot "interfere with the commercial wisdom" of the lenders. However, this was challenged by YEIDA before NCLAT.
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