Curation Team
GHAZIABAD: Ghaziabad Development Authority (GDA) is set to hand over a 46,000sqm plot near Shaheed Sthal New Bus Adda metro station, which was allotted to Celebration City for the construction of a mall nearly two decades ago, to Sakshi Fincap Private Ltd.
The commercial complex never took off as the first developer defaulted after an initial payment of Rs 25 crore and went bankrupt.
After National Company Law Tribunal (NCLT) recognised GDA as a secured financial creditor, the prime property was signed up for re-allotment.
Officials said NBCC India Limited and Sakshi Fincap Private Limited have offered to complete the project. “After GDA board approved Sakshi Fincap’s proposal of Rs 115 crore, the draft was sent to the state govt for clearance,” a GDA official said.
According to officials, GDA auctioned 45,963 sqm of land to Celebration City, formerly known as Vridhi Merchant Pvt Ltd, for Rs 100 crore in 2006. The developer launched a project called Red Mall, whose unfinished building still stands at the site.
“The developer was supposed to pay 25% of the amount upfront and 75% of the remaining amount in 16 instalments with 12% simple interest. The developer paid Rs 25 crore in July 2007, but after that, it defaulted on the instalments. There was a clause in the memorandum of understanding that if the developer defaulted on payment, GDA would additionally charge 18% compound interest on the remaining sum. Accordingly, the final amount was calculated to be Rs 217 crore,” the official said.
The developer was issued a fresh instalment module in 2009, 2010, 2013, and 2018, but managed to submit a partial amount. “In 2019, a case was filed in NCLT. In Jan this year, the NCLT accorded the status of secured financial creditor to GDA,” the official added.
If approved, GDA can recover its dues after 20 years, which it plans to invest in Noida Electronic City to Sahibabad metro corridor and other upcoming developmental projects.
