NCLAT Greenlights Indiabulls-Embassy Megamerger

The National Company Law Appellate Tribunal (NCLAT) has approved the merger of Indiabulls Real Estate and Embassy Group, overturning a previous decision by the Chandigarh bench of the NCLT. This decision allows for the creation of a Pan-India real estate company, following 18 months of halted progress.

The National Company Law Appellate Tribunal (NCLAT) has sanctioned the scheme of amalgamation between Indiabulls Real Estate Limited (IBREL) and the Embassy Group, merging the two real estate giants. This ruling overturns an earlier objection by the National Company Law Tribunal (NCLT) in Chandigarh, which had stalled the process for 18 months.

The NCLT had withheld permission based on concerns from the Income Tax Department regarding the valuation and share swap ratio. However, the NCLAT found that the valuation had been carried out using the accepted Discounted Cash Flow Method and was approved by shareholders and creditors.

This merger is significant as it creates a Pan-India real estate entity, combining North India's IBREL with South India's NAM Estates and Embassy One. The NCLAT's decision paves the way for this transformative conglomerate, emphasizing the sound commercial wisdom of the stakeholders involved.

(With inputs from agencies.)