NCLT approves revival plan for Nirmal Lifestyle's stalled Mumbai housing projects
The National Company Law Tribunal (NCLT) in Mumbai has given the green light to a resolution plan for Nirmal Lifestyle (Mulund) Private Limited. The decision brings relief to hundreds of homebuyers and aims to revive stalled housing projects under the troubled developer. Pune-based Mantra Properties and Developers Private Limited will lead the revival effort after submitting the approved plan. Nirmal Lifestyle had been under the Corporate Insolvency Resolution Process (CIRP) since July 2023. The newly approved plan includes an equity injection of Rs 201 crore to restart projects and clear outstanding debts to creditors.
Homebuyers in Project Olympia, though not formally classified as creditors, will still benefit from the resolution. Their interests were considered based on sales records, even without direct claims. Eligible buyers now have two options: they can settle remaining payments and take possession within 48 months, or request a refund within 15 months. The resolution also covers Project Divine, a development by Nirmal Developers, a subsidiary of the corporate debtor. Mantra Properties will take over the completion of this project as part of the revival framework. Once the approval is finalised, homebuyers will receive a 21-day notice to submit their claims and decide on their next steps.
The NCLT’s approval paves the way for stalled projects to resume, offering a clear path for homebuyers to either secure their properties or receive refunds. With Rs 201 crore allocated for revival, the plan ensures creditors are paid while addressing the concerns of investors in Olympia and other developments.
