NCLT approves Authum-Cosmos plan for A.A. Estate, developer with 135 homebuyers

The National Company Law Tribunal's Mumbai bench has approved a resolution plan for A.A. Estate Private Limited, a Mumbai developer whose creditors include 135 homebuyers. In an order pronounced on 27 October 2026, the tribunal approved the plan of a consortium of Authum Investment & Infrastructure Limited and Cosmos Prime Projects Limited, which has a total outlay of Rs 579.94 crore. State Bank of India had voted against it.

What Happened

The company was admitted into the corporate insolvency resolution process, the tribunal-supervised rescue process for companies that default, on 6 December 2022, on a petition by State Bank of India. According to the order, it holds development rights in four redevelopment projects: RNA Grandeur, RNA Address, RNA Bizz and RNA Kandivali. The land is owned by MHADA and leased to the housing societies.

In the committee of creditors, the homebuyers held 36.65% of the vote, Authum Investment, as assignee of a loan of Suraksha Asset Reconstruction Company, held 41.97%, and State Bank of India held 21.37%. The plan was approved with 78.62% of the vote.

Per the order, State Bank of India, with an admitted claim of Rs 201.12 crore, gets Rs 24.75 crore upfront, or 12.31%. Unsecured financial creditors, with admitted claims of Rs 739.82 crore, are to receive Rs 554.87 crore, or 70%, with payments to homebuyers made on a deferred basis on the relevant conveyance date under the plan's schedule. The plan values homebuyers' entitlement on the assumption that they will be allotted carpet area, at an estimated Rs 25,000 a square foot in RNA Grandeur and Rs 35,000 in RNA Address. Employees with admitted claims of Rs 5.39 crore get Rs 13,47,500.

A valuer appointed on the tribunal's direction put the projects' liquidation value at Rs 214.34 crore.

What It Means

The plan takes effect from the date of the order and binds the company, its creditors, employees and government authorities. The moratorium on legal action against the company ends. For homebuyers, the order sets the route to their flats or payments under the plan's schedule. The tribunal directed the resolution professional to report on implementation, preferably every quarter. The order may be appealed to the National Company Law Appellate Tribunal.

Source: NCLT order