NCLT Mumbai Sanctions Filmistan Demerger Scheme; Rental Business To Be Transferred To Arkade Developers

The National Company Law Tribunal (NCLT) at Mumbai has sanctioned a scheme of arrangement under Sections 230–232 of the Companies Act providing for the demerger of the rental business relating to leasehold rights in property of Filmistan Pvt. Ltd. into its parent company Arkade Developers Ltd.

A bench comprising Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan observed that the proposed restructuring was, “fair and reasonable and is not violative of any provisions of law and is not contrary to public policy.”

Filmistan Pvt Ltd is engaged in the business of manufacturing, production, distribution and exhibition of cinematographic films as well as rental activities in India.

Arkade Developers, the resulting company, is involved in real estate development, including redevelopment projects, land acquisition, planning, construction, and marketing of residential and commercial properties. The boards of directors of both companies approved the scheme in their meetings held on September 29, 2025.

The restructuring aims to transfer and vest the rental business undertaking of Filmistan, including leasehold rights in property, into Arkade Developers Limited on a going concern basis. According to the companies, the demerger will streamline management and control of leasehold rights associated with the property and integrate them with the entity that already owns the underlying land.

This is expected to create a unified ownership structure, improve administrative efficiency, and enable Arkade Developers to better explore future business opportunities in the real estate sector. The Regional Director, Western Region, filed a report dated February 11, 2026, raising certain observations, which were addressed by the applicant companies through clarifications and undertakings.

Finding the responses satisfactory, the tribunal approved the scheme and directed the companies to file the order with the Registrar of Companies and comply with applicable statutory requirements.