Kanakia Group Seeks NCLT Nod To Demerge Real Estate Arm For Streamlined Operations And Investor Appeal
Kanakia Group Seeks NCLT Nod To Demerge Real Estate Arm For Streamlined Operations And Investor Appeal
The Mumbai-based Kanakia Group has approached the Mumbai Bench of the National Company Law Tribunal (NCLT) seeking approval to demerge its real estate businesses — Kanakia Spaces Realty Pvt Ltd and Transparent Developers Pvt Ltd — from its other business operations.
The proposed restructuring aims to segregate the group’s real estate vertical from its non-real estate ventures. According to the companies’ legal counsel, the demerger is designed to streamline operations, enhance operational and financial flexibility, and improve access to capital. The group believes that the move will make the investment process more efficient and appealing to a broader pool of potential investors.
During a recent hearing, the division bench comprising Justice V.G. Bisht and technical member Prabhat Kumar directed the companies to submit additional documentation before the next hearing. These documents include:
- A list of contingent liabilities
- Details of any pending legal proceedings against the companies
- Comprehensive information on letters of credit, including sanctioned amounts, amounts utilised, and margin money furnished.
The first applicant company, Kanakia Spaces Realty, has already received consents in the form of affidavits from its unsecured creditors, with the majority having approved the proposed scheme, a lawyer for the group confirmed.
While the Kanakia Group declined to comment on the development, industry experts note that corporate restructurings such as this are increasingly being adopted by Indian companies to unlock value and sharpen strategic focus. By separating distinct business verticals, companies can offer greater clarity to investors and lenders, often leading to better valuations and more targeted capital allocation.
