NCLT allows insolvency proceedings against Raheja Developers

In a significant development impacting thousands of homebuyers, the National Company Law Tribunal (NCLT) in New Delhi has admitted a petition to initiate insolvency proceedings against the prominent real estate developer, Raheja Developers Ltd.

The order, dated August 21, 2025, comes in response to a joint petition filed by 130 allottees (homebuyers) of the company’s ‘Krishna Housing Scheme’ project in Sector-14, Sohna, Gurugram. The financial creditors alleged a default of a staggering ₹38.89 crores by the corporate debtor.

The core of the dispute

The ‘Krishna Housing Scheme’ was launched as an affordable housing project under the Haryana government’s 2013 policy. The allottees, in their petition, stated that they had paid over 90% of the total sale consideration, with many paying the full amount, based on assurances from Raheja Developers.

As per the agreement, possession was to be handed over by 10 June 2019, following environmental clearance and building plan approvals obtained in 2015. However, the company failed to complete the project or deliver the apartments, leading to the alleged financial default.

The homebuyers argued that the delay constituted a default under the Insolvency and Bankruptcy Code (IBC), 2016, as the amounts paid by them are deemed a “financial debt.”

Raheja’s defence and tribunal’s ruling

Raheja Developers, represented by senior advocate P Nagesh, contested the application. The company cited delays due to the failure of government authorities to provide external infrastructure like roads and sewage, further exacerbated by the COVID-19 pandemic. They also highlighted their financial stability, having completed 18 projects ahead of schedule.

The corporate debtor initially expressed a willingness to settle the matter and refund the allottees but failed to provide a definite timeline or acceptable terms.

After hearing both sides, the NCLT bench comprising Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Shri Atul Chaturvedi found the application complete and admissible. The tribunal held that a clear debt and default existed, satisfying the threshold required under Section 7 of the IBC.

What happens next?

The NCLT has appointed Brijesh Singh Bhadauriya as the Interim Resolution Professional (IRP). His immediate task will be to take control of the company’s operations, manage its assets, and invite claims from all creditors.

Also Read: NCLT initiates insolvency proceedings against Mahagun over ₹260 crore debt