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Informist, Tuesday, Nov. 19, 2024

 

--NCLT admits plea to start insolvency proceedings against Raheja Developers 

--CONTEXT: Allottees of project Raheja Shilas in Gurugram moved NCLT 

--CONTEXT: Total amount of default by Raheja Developers was INR 1.13 bln 

 

NEW DELHI – The Delhi bench of the National Company Law Tribunal on Tuesday admitted a petition to start insolvency proceedings against Raheja Developers Ltd. and imposed a moratorium against it under Section 14 of the Insolvency and Bankruptcy Code, 2016. The tribunal appointed Manindra Kumar Tiwari as the interim resolution professional of Raheja Developers to carry out the functions as per the 2016 Code.

 

"The Application bearing (IB)–239(PB)/2023 filed by the Applicants under Section 7 of the Insolvency & Bankruptcy Code, 2016 for initiating CIRP against CD i.e. M/s Raheja Developers Limited is hereby admitted," said the tribunal. During the insolvency period, the management of Raheja Developers shall vest in the interim resolution professional, in terms of Section 17 of the Code, said the tribunal. 

 

The insolvency petition was filed by allottees of Raheja Shilas project at Gurugram in Haryana. The allottees said that Raheja Developers had approached them for their project. The allottees had filled the application form and started making payments on subsequent dates and, accordingly allotment letters were issued to them by the company for various units on a later date. The allottees said the total amount of debt by Raheja Developers was INR 1.13 billion.

 

The allottees said Raheja Developers committed under the agreements to hand over the possession of units within two years, with a grace period of six months. The allottees said they had paid over 95% of the total sale price and 100% of all the demand made till date as per the demand letter in majority of cases. However, Raheja Developers completely failed to deliver the possession of their units even within the extended time schedule, the allottees said, adding the total number of units in the project was 94.

 

Further, the allottees, through right to information, got to know that for the said project no environmental clearance had been taken by Raheja Developers. The project has been constructed in violation of Environmental Impact Assessment notification 2006, the allottees said. 

 

Opposing the petition, Raheja Developers said that the default occurred between 2012 to 2014 because as per clause 4.2 of the agreement, the buyers were liable to be given possession within 2 years and additional 6 months as grace period. The insolvency application was filed in 2023 and it was clearly beyond the limitation period, said Raheja Developers. The default was caused by the actions beyond its control and, accordingly it cannot be penalised by an action under the 2016 Code, Raheja Developers said.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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