NCLT Chandigarh withholds Embassy Group companies' merger
Real Estate

NCLT Chandigarh withholds Embassy Group companies' merger

The Chandigarh bench of the National Company Law Tribunal (NCLT) has withheld the proposed merger of NAM Estates and Embassy One Commercial Property Developments with Indiabulls Real Estate.

The merger sanctioned by Bengaluru bench the NCLT, which has jurisdiction over NAM Estates and Embassy One on April 22, 2022.

However, the NCLT’s Chandigarh bench, which has jurisdiction over Indiabulls Real Estate, had earlier raised certain concerns based on the objections cited by the Income Tax department to the merger, Indiabulls Real Estate said in a regulatory filing.

Shares of Indiabulls Real Estate fell nearly 20% on Tuesday’s session to end at Rs 55.34 per share.

Embassy Group expressed its disappointment at the Chandigarh bench’s decision.

“We have provided all the necessary details and clarifications sought by the NCLT regarding the details of NAM Estates and Embassy One and have also meticulously addressed the objections cited by the Income Tax department, including giving an undertaking that any past tax issues will be borne by Embassy Group and not by the public shareholders of IBREL,” said Jitu Virwani, chairman, Embassy Group.

Embassy Group remains the largest shareholder in Indiabulls Real Estate and is committed to the creation of one large platform and will explore all possible options at this stage, the Bengaluru-based company said.

Indiabulls added that the company strongly believes that these objections and concerns were unfounded, unjustified and do not impact the merger in a significant manner.

The company said it will await the detailed order to assess the next steps and shall explore all options, including filing an appeal against the order of the NCLT, Chandigarh, before the National Company Law Appellate Tribunal at the earliest.

The merger has already received support from 99.9987% of its shareholders and approval from other regulators. Indiabulls Real Estate’s board will be meeting on Wednesday to chalk out its plan and strategy, the filing added.

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The Chandigarh bench of the National Company Law Tribunal (NCLT) has withheld the proposed merger of NAM Estates and Embassy One Commercial Property Developments with Indiabulls Real Estate. The merger sanctioned by Bengaluru bench the NCLT, which has jurisdiction over NAM Estates and Embassy One on April 22, 2022. However, the NCLT’s Chandigarh bench, which has jurisdiction over Indiabulls Real Estate, had earlier raised certain concerns based on the objections cited by the Income Tax department to the merger, Indiabulls Real Estate said in a regulatory filing. Shares of Indiabulls Real Estate fell nearly 20% on Tuesday’s session to end at Rs 55.34 per share. Embassy Group expressed its disappointment at the Chandigarh bench’s decision. “We have provided all the necessary details and clarifications sought by the NCLT regarding the details of NAM Estates and Embassy One and have also meticulously addressed the objections cited by the Income Tax department, including giving an undertaking that any past tax issues will be borne by Embassy Group and not by the public shareholders of IBREL,” said Jitu Virwani, chairman, Embassy Group. Embassy Group remains the largest shareholder in Indiabulls Real Estate and is committed to the creation of one large platform and will explore all possible options at this stage, the Bengaluru-based company said. Indiabulls added that the company strongly believes that these objections and concerns were unfounded, unjustified and do not impact the merger in a significant manner. The company said it will await the detailed order to assess the next steps and shall explore all options, including filing an appeal against the order of the NCLT, Chandigarh, before the National Company Law Appellate Tribunal at the earliest. The merger has already received support from 99.9987% of its shareholders and approval from other regulators. Indiabulls Real Estate’s board will be meeting on Wednesday to chalk out its plan and strategy, the filing added. Also Read REC signs agreement to run RDSS Scheme with Nagaland govt JSW Renew Energy Three signs power purchase deal with Solar Energy Corp..

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