National Company Law Tribunal approved proposed demerger scheme of Emaar MGF

Vastavam web: National Company Law Tribunal has approved the proposed demerger scheme of Emaar MGF Land Ltd that will pave the way for joint venture partners Dubai’s Emaar Properties and India’s MGF Development go separate ways.Approving the scheme, the tribunal said the “liabilities and duties” related to the assets demerged from Emaar MGF Land would be vested with the resultant company– MGF Developments.Emaar Properties, which entered India in 2005 with largest FDI in the realty sector, has invested about Rs 8,500 crore in the Indian real estate market through the JV.

In a 14-page order, NCLT said that “all the property, rights and powers of the demerged undertaking of the demerged company be transferred… to the resulting company”.”All the liabilities and duties of the demerged undertaking of the demerged company be transferred without further act or deed to the resulting company…,” the order said.The tribunal also said that all proceedings now pending by or against the demerged undertaking of Emaar MGF Land be continued by or against the resulting company.”The scheme provides for the demerger of an undertaking, being part of the construction and development business of Emaar MGF Land Ltd (demerged company) to MGF Developments Ltd (resulting company)…,” Emaar MGF Land had said in May 2016.

As per the scheme, the development right of 1,685 acres would be transferred to MGF Developments.As per the scheme, MGF Developments would issue 9 equity shares of Rs 10 each for every 416 shares held in the Emaar MGF Land, as a consideration for the demerger of the demerged undertaking, to shareholders of the JV firm.