Following today's HC's refusal to listen to builders' petition, following builders have been put in the bankruptcy watchlist immediately by the nationalized banks and all fresh/pending loan disbursement have been stopped for all their projects including NOIDA and elsewhere. Banks have put on hold all the direct payments of builders loan also. (The list has been circulated by the IBA to all member banks in its confidential circular)

Following builders may seek insolvency/bankruptcy protection:

Supertech Limited
Amrapali Group
Antriksh
Ajnara
Mahagun
Paramount
Patel
Devika
Panchsheel
Stellar
Trident
Rajhans
Earth Infrastructures
Connoisseur Buildtech Pvt. Ltd
Earthcon
Gulshan Homes
Shree Group
Nirala Estates
Eros
Ajay Enterprizes
Valencia
Super City
Arihant
Gaursons

This is an initial list circulated by IBA and contains instructions that certain more partners may be included in forthcoming addendum.
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  • This is fact that which such orders.. a pandora box is opened and everyday we'll hear new news...

    I dont see any area safe now in whole NCR... any day... in any area.. farmers can stand up and ask for more compensation..
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  • About bankrupcy.. I think most builder floated different company for each project.. so that particular entity would default rather than whole company... any comments..
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  • I think this is not a BANKRUPTCY WATCHLIST at this time , this is just a Cautious WATCHLIST right now for BANKS till dispute ends in NE.
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  • Yes.. No finance in Noida Ext... This is just watchlist
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  • Center's new land acquisition bill proposes to give six (6) times the circle rate to farmers. Will NE farmers not wait for this act rather than make compromise before August 12?
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  • Few will bankrupt. But builder like Patel/Mahagun/Ajnara/Stellar has very limited presence in NE. Problem is with Gaur/Amraplai/SuperTech who has done lot of construction already.

    I don't think Patel has done anything significance work in NE project except making sample flat and digging.
    Mahagun is running multiple projects and they might shift customers to either Ghaziabad Mahagunpuram or CR projects. Also they might have done very minimal work.

    If Mahagun is reading here then they should launch 2 basic 1 BHK tower in Mahagun Mordene that can easily accomodate 500 buyers of 2BHK flat in NE project (I mean set the price as it should be equal to their NE investment).

    I know it will dilute Mordene Sec 78 project but we should keep big heart and think about people who boght in NE rather than just thinking ourself.

    High time to test builder's customer sensitivity who will provide assurence to their buyers will survive.

    I don't think G.N officals will come with any out of court settlement as it will be big trouble to main G.N land also as everyone will start asking for more money.

    Back door solution like giving arm licence/Govt. Tenders might unlock few piece of land.

    BTW, buyers to collect ho ker ke.. NOIDA/G.N officials to reward dena chahiye. Smman samaroh aayojit kerna chahiye.
    Actually big big shoe pahen ker reward dene jana chahiye...
    I am not breaking IREF rule but hope you all understand...
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  • Originally Posted by fritolay_ps
    Today I got SMS confirmation for Home Loan sanction from HDFC bank in Noida sector 120 project


    fritolay, read my post again.

    It is for the nationalized banks only. IBA cannot dictate private banks on these matters.

    HDFC Bank is a private bank in India that provides all kinds of banking facilities to the citizens of India. It is fully owned by HDFC Ltd. It is the second largest private sector bank in India behind ICICI Bank.
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  • Originally Posted by ashokyadav
    About bankrupcy.. I think most builder floated different company for each project.. so that particular entity would default rather than whole company... any comments..


    This is, in fact, a very good point. I guess you are correct in pointing that out. But if a group company gets bankrupt, won't it hurt the reputation of the whole group?
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  • Originally Posted by vkumar1
    This is not for NE Projects - This is for all their projects in Main Noida, Ghaziabad, Meerut etc. All these projects are in peril.
    Forget about NE, that is already a gone case!



    Mr V kumar, I know you are a advocate. Can you please suggest a legal firm who can take care flat buyers concern and safeguard.

    I have a flat in Sec 78 Mahagun Mordene and we all buyer are looking for legal company who can guide us and keep a watch on financial activity of Mahagun. Mean to say total outsourcing of advising buyers and keeping tab on relationship issue with NA.

    If you know any firm who deal in that then please reply or PM me.

    Buyers don't have time or expertise to look into legal details of project like loan riased by builder/payment plan etc so better to take professinal help and be safe.
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  • Originally Posted by vikasn
    This is, in fact, a very good point. I guess you are correct in pointing that out. But if a group company gets bankrupt, won't it hurt the reputation of the whole group?


    Reputation would be gone as soon as company doesn't return the money even after court's order.
    Now coming to the point of separate company - yet it is right that it is a separate company but real estate business involves a lot of money rotation from one project to another. Like in any other business, the working capital plays a very important role. Without enough working capital the work of any company will suffer as external financing would be at a very high cost to these builders (Banks or private equity), suppliers wouldn't be ready to give credit and if work won't progress, the CLP buyers won't pay.....leading to a vicious cycle.
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  • I have no comment on authenticity of the information.... neither the type of watchlist.

    Builders are all clever and they have gone through this kind of stuff many a times.

    What they do is, for each and every project, they open a Special Purpose Vehicle (SPV) ... in simple word, a dummy shell company with complex web of ownership. This complex ownership structure works wonder to siphon the profit but collapse immediately when the other way.

    These clever builder will just close the affected SPV and carry on as usual.

    Reputation? come on!! trust our great memory power and marketing campaign!! MGM/Unitech is still considered good brand in many parts.
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  • For sure Patel has not done any construction in NE, but they would have paid huge bribe for getting another plot in NE where they announced Patel Sports City project. Bribe paid is not refundable. But, yes Patel is big company, it can absorb such losses.

    Mahagun has also not done much construction in NE, actually excavation work is profitable to company as they sell soil (mitti), so Mahagun has not much spent in NE project.


    Originally Posted by chandra2034
    Few will bankrupt. But builder like Patel/Mahagun/Ajnara/Stellar has very limited presence in NE. Problem is with Gaur/Amraplai/SuperTech who has done lot of construction already.

    I don't think Patel has done anything significance work in NE project except making sample flat and digging.
    Mahagun is running multiple projects and they might shift customers to either Ghaziabad Mahagunpuram or CR projects. Also they might have done very minimal work.

    If Mahagun is reading here then they should launch 2 basic 1 BHK tower in Mahagun Mordene that can easily accomodate 500 buyers of 2BHK flat in NE project (I mean set the price as it should be equal to their NE investment).

    I know it will dilute Mordene Sec 78 project but we should keep big heart and think about people who boght in NE rather than just thinking ourself.

    High time to test builder's customer sensitivity who will provide assurence to their buyers will survive.

    I don't think G.N officals will come with any out of court settlement as it will be big trouble to main G.N land also as everyone will start asking for more money.

    Back door solution like giving arm licence/Govt. Tenders might unlock few piece of land.

    BTW, buyers to collect ho ker ke.. NOIDA/G.N officials to reward dena chahiye. Smman samaroh aayojit kerna chahiye.
    Actually big big shoe pahen ker reward dene jana chahiye...
    I am not breaking IREF rule but hope you all understand...
    CommentQuote
  • Amrapali Doomed?

    Originally Posted by ranjeetks
    For sure Patel has not done any construction in NE, but they would have paid huge bribe for getting another plot in NE where they announced Patel Sports City project. Bribe paid is not refundable. But, yes Patel is big company, it can absorb such losses.

    Mahagun has also not done much construction in NE, actually excavation work is profitable to company as they sell soil (mitti), so Mahagun has not much spent in NE project.

    what about Amrapali. they did quite work in leisure valley. Are they doomed?
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  • Originally Posted by ondabhai
    I have no comment on authenticity of the information.... neither the type of watchlist.

    Builders are all clever and they have gone through this kind of stuff many a times.

    What they do is, for each and every project, they open a Special Purpose Vehicle (SPV) ... in simple word, a dummy shell company with complex web of ownership. This complex ownership structure works wonder to siphon the profit but collapse immediately when the other way.

    These clever builder will just close the affected SPV and carry on as usual.

    Reputation? come on!! trust our great memory power and marketing campaign!! MGM/Unitech is still considered good brand in many parts.


    g-harondabhai, you are 100% right.
    However, I know for sure Amrapali has SPV for most of its projects, but most novice builders including Supertech are under one umbrella (The reason being GREED - supertech lately wanted to launch IPO).
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  • Originally Posted by chandra2034
    Mr V kumar, I know you are a advocate. Can you please suggest a legal firm who can take care flat buyers concern and safeguard.

    I have a flat in Sec 78 Mahagun Mordene and we all buyer are looking for legal company who can guide us and keep a watch on financial activity of Mahagun. Mean to say total outsourcing of advising buyers and keeping tab on relationship issue with NA.

    If you know any firm who deal in that then please reply or PM me.

    Buyers don't have time or expertise to look into legal details of project like loan riased by builder/payment plan etc so better to take professinal help and be safe.


    Dear chandra2034, it is a very good idea to be proactive, if you are at least 5+ party in a project. However, it is too dificult to get the rights to monitor builders' accounts. No firm will be able to help you at that level.

    Best thing will be to let builder know by some means that it would be against his good health to take mileage of the situation, and he should be fair with buyers with clean title land. It is imperative that you should make an association of all stake holders asap and impress upon the builder.
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