Raheja Developers to face insolvency heat after homebuyers move petition in NCLT
Raheja Developers, a prominent real estate company based in Gurugram, India, has been facing insolvency proceedings in recent times. The National Company Law Tribunal (NCLT) initiated these proceedings in response to complaints filed by over 40 flat buyers who alleged delays in the delivery of their units at the Raheja Shilas project in Sector 109, Gurugram.
The buyers claimed that they had made significant payments towards their units but had not received possession within the stipulated timelines, which were originally set between 2012 and 2014. The NCLT found that Raheja Developers had a “debt due and default” against these flat buyers and ordered the initiation of Corporate Insolvency Resolution Proceedings (CIRP). The corporate debtor had defaulted on a payment of Rs 113 crore.
However, Raheja Developers challenged this order before the National Company Law Appellate Tribunal (NCLAT). In a significant relief for the company, the NCLAT stayed the insolvency proceedings and limited them to the Raheja Shilas project only. The tribunal also directed the Interim Resolution Professional (IRP) to collate the claims related to this project and submit a status report.
It is important to note that this is not the first time Raheja Developers has faced insolvency proceedings. In 2019, similar proceedings were initiated against the company due to delays in the Raheja Sampada project. However, these proceedings were later dismissed as the delays were attributed to factors beyond the company’s control, such as regulatory approvals.
The current situation highlights the challenges faced by the real estate sector in India, where delays in project completion and delivery are common. It also underscores the importance of timely project execution and adherence to contractual obligations for developers.
The New Delhi bench of NCLT has appointed Manindra Kumar Tiwari as the interim resolution professional in the case. Tiwari will now invite claims from financial and operational creditors of the Gurugram-based developers.
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