Institutional capital has stepped in to revive one of Mumbai’s longest-stalled redevelopment projects, with ASK Property Fund committing Rs 340 crore to Mantra Group for a mixed-use residential development in Jogeshwari. The funding enables Mantra to execute a project with a gross development value estimated at over Rs 3,000 crore, which had remained stuck for nearly 17 years due to financial distress and litigation under its previous developer.
The Jogeshwari project, located near the Jogeshwari–Vikhroli Link Road (JVLR), was acquired by Mantra Group through the National Company Law Tribunal (NCLT) resolution process. The asset is a large-scale MHADA colony redevelopment involving 576 original occupant families and 350 homebuyers who had purchased homes in partially launched sale towers under the earlier developer. Industry experts see the transaction as a notable example of how India’s insolvency framework is increasingly being used to resolve stalled real estate developments, particularly large urban redevelopment schemes that affect thousands of residents. The project had accumulated debt exceeding Rs 4,300 crore, triggering insolvency proceedings after homebuyers approached the tribunal as financial creditors. Under the approved resolution plan, Mantra committed approximately Rs 614 crore to complete pending construction, including two sale towers promised to existing homebuyers, with delivery timelines of around 18 months. The plan also prioritised resettlement obligations toward original occupants, many of whom had been displaced or awaiting permanent housing for over a decade. Following takeover, the developer moved to stabilise the project by clearing rental arrears for over 300 tenants and making advance rental payments to families still residing on-site. Construction activity has since resumed, marking a shift from prolonged stagnation to execution.
Once resettlement obligations and handover to existing buyers are completed, the developer is expected to retain a residual land parcel of close to six acres. This portion is likely to be monetised through fresh residential development, forming the core of the project’s estimated Rs 3,000-crore development potential. Market participants note that the project’s scale and location position it as a significant value unlock within Mumbai’s western suburban corridor. In addition to the Mumbai project, ASK Property Fund’s investment will also support two residential developments in Pune’s Wakad and Mundhwa micro-markets. These projects, spread across large land parcels, reflect continued investor preference for established residential zones with proven end-user demand. Analysts highlight that the deal reflects a broader trend of private equity capital backing resolution-led real estate opportunities, where risk is mitigated through legal clarity and phased execution. Such capital is increasingly focused on assets with approvals in place and defined exit visibility.
For Mantra Group, the funding strengthens its expansion beyond its core Pune market into complex urban redevelopment in Mumbai. For the wider market, the transaction underscores how stalled housing projects once considered value traps are becoming viable investment opportunities under India’s evolving insolvency and regulatory framework.
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Mantra Group Secures Capital to Complete 17-Year-Old Stalled Project
