The NCLT has approved a resolution plan for Radius & Deserve Land Developers by Aspect Group's joint venture, Bharadvaja Buildcon LLP. The plan involves a total value of Rs 352.50 crore and settles creditor claims through constructed area rather than cash. This marks the end of an insolvency process that began in May 2023.
Detailed Coverage
The Mumbai bench of the National Company Law Tribunal (NCLT) has cleared the resolution plan for Radius & Deserve Land Developers, a real estate firm that had been undergoing corporate insolvency proceedings since May 2023. Bharadvaja Buildcon LLP, a joint venture involving the Aspect Group, was named the successful resolution applicant following a competitive bidding process.
Asset Valuation and Settlement Structure
The approved resolution plan is valued at Rs 352.50 crore. According to information shared by the Aspect Group, this amount is significantly higher than the assessed fair value of the company’s assets, which stood at Rs 132.98 crore, and its liquidation value of Rs 86.15 crore. Unlike standard resolution plans that often involve direct cash payouts to lenders, this settlement structure is unique because it compensates the secured financial creditor with physical assets. Specifically, the creditor is set to receive up to 100,000 square feet of constructed free-sale area from a slum rehabilitation project located at Teenmurti in Borivali, Mumbai.
Timeline and Execution Risks
The resolution plan, which received unanimous approval from the Committee of Creditors in April 2025, includes a long-term execution roadmap. Construction of the free-sale component is expected to commence within 25 months of the court's approval. The delivery of the constructed area to the secured creditor is scheduled for the following 24 months, bringing the total project timeline to 49 months.
For investors and stakeholders, the key monitorable will be the project's execution, particularly given the complexities often associated with slum rehabilitation projects in Mumbai, such as regulatory approvals, rehabilitation of existing tenants, and construction costs. The Aspect Group has indicated that the plan will be funded through a mix of promoter capital, internal company funds, and potential external debt. Success will depend on the developer's ability to navigate these operational requirements within the stipulated timeline without incurring significant cost overruns that could impact project viability.