NCLT blocks merger of Indiabulls Co, Embassy units – Times of India

New Delhi: National Company Law Tribunal (NCLTChandigarh bench stays merger of realty firms embassy groupwith some residential and commercial projects of Indiabulls Real EstateAs a result of which the shares of the Indiabulls group firm fell by 20%.
Mumbai-based Indiabulls Real Estate said it will decide on the further course of action after going through the judgment and will explore options, including filing an appeal against the NCLT order.
In August 2020, Bangalore based realty firm Embassy Group entered into an agreement to merge certain residential and commercial projects with Indiabulls Real Estate through a cashless scheme of amalgamation. Embassy Group will become the promoter of the merged entity.
Shares of Indiabulls Real Estate closed 20% down at Rs 55.3 on the BSE. Its market valuation declined by Rs 749 crore to Rs 2,998 crore. Indiabulls Real Estate said the scheme of merger has already been approved by the NCLT, Bengaluru bench, which has jurisdiction NAM Estates and Embassy One, in April 2022.
“The Chandigarh Bench, which has jurisdiction over Indiabulls, had expressed concern based on the objections cited by the IT department to the merger. These objections do not impact the merger in a significant manner and were addressed before the NCLT,” Indiabulls said.