NCLT admits insolvency petition against Three C Infratech

The National Company Law Tribunal (NCLT), New Delhi Bench, has admitted an insolvency petition against Three C Infratech Pvt. Ltd, a subsidiary of the embattled Three C Group, while directing a thorough investigation into allegations of round-tripping and fraud involving its sister concern, Three C Green Developers Pvt. Ltd.

The petition, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by the Resolution Professional (RP) of Three C Green Developers (itself under insolvency since 2021), claims a default of ₹83.93 crores (principal ₹55.20 crores + interest).

Pooja Bahry was appointed as the Interim Resolution Professional (IRP), replacing the RP’s nominee, to ensure impartiality.

The NCLT case has been complicated by allegations of fraudulent intent, with Moon Light Propbuild Pvt. Ltd. claiming the insolvency application was filed with malicious purposes.   However, the tribunal dismissed objections raised by Moonlight Propbuild Pvt. Ltd.

The NCLT emphasized that the Corporate Debtor’s directors (a pantry boy and office clerk) were profiled nominees with no operational control, raising red flags about the company’s misuse. It upheld the RP’s authority to file the petition, stating insolvency proceedings were necessary to trace assets and assist investigations.

The tribunal clarified that the 9.2-acre Ambala land (attached by the Enforcement Directorate under PMLA) will remain outside the moratorium, allowing ED proceedings to continue.

NCLT Concerns: Questioning the Nature of Debt

The NCLT has been presented with arguments that cast doubt on the very foundation of the insolvency petition. Ridhima Verma, representing Moonlight Propbuild in the case, drew the tribunal’s attention to inconsistencies in how the funds advanced by Three C Infratech Pvt. Ltd. to Three C Green Developers Pvt. Ltd. were recorded.  

The NCLT document quotes part IV of the Section 7 application, noting that the Corporate Debtor (Three C Green Developers) is a sister concern of the Financial Creditor (Three C Infratech) and that advances were made “time to time, as per request and requirement,” which potentially contradicts the definition of a loan.  

Additionally, the Resolution Professional’s reliance on balance sheets procured from individuals described as “pantry boy and office clerk” has been questioned, further fueling the debate over the true nature of the financial transactions.  

Allahabad High Court’s Damning Assessment: A CBI Inquiry Ordered

However, the most serious observations come from the Allahabad High Court. In a judgment dated February 24, 2025, the Allahabad High Court directed a CBI inquiry into the affairs of the Three C Group Companies. This inquiry stems from serious allegations of a major scam involving the NOIDA Authority and builders concerning the “Sports City” project.  

The Allahabad High Court’s observations are particularly scathing. It noted the formation of a “web of companies” by the same promoters, with allegations of shareholding changes made without proper authority. The court deemed it necessary to “pierce the corporate veil” to identify those responsible for the alleged fraud.  

A key concern raised by the Allahabad High Court is the allegation that assets from the Sports City project were diverted into various smaller companies, while the liability for developing the sports facilities was concentrated in just two companies. The court further suggested that the insolvency proceedings of some of these companies, including Three C Green Developers, were “designed only to avoid payment” to the NOIDA Authority, banks, and the State of U.P.  

The High Court also highlighted a pattern of misconduct, alleging that the promoters would secure land from Noida, fail to pay dues, siphon off funds, and then push the development company into insolvency.  

Regarding the Sports City project, the Allahabad High Court questioned how encroachments could exist on land designated for sports facilities but not on land for residential/commercial development. The court deemed the builders’ explanations for delays as “not at all believable” and suggested that selling flats without disclosing encroachments could constitute fraud against homebuyers.  

The Allahabad High Court concluded that the entire Sports City development process was tainted by corruption and collusion between the NOIDA Authority and the builders, resulting in significant losses for the Authority, the State, and homebuyers.  

Delhi High Court’s Observations: Homebuyers “defrauded”

The Delhi High Court has also weighed in on the matter. In a judgment dated March 20, 2025, in the case of Suresh Kumari vs. RoC & Ors., the Delhi High Court made strong remarks about the directors of Three C Group Companies.  

The Delhi High Court acknowledged the plight of homebuyers who invested substantial sums, alleging that these funds, amounting to nearly Rs. 1500 crores, were “siphoned off” by the company’s promoters and directors. The court used strong language, describing the promoters’ actions as “dubious means” and “unscrupulous”.

Also See: NCLT approves Rs 140-cr resolution plan by Ace Infracity Developers for Three C Homes