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Informist, Wednesday, Apr. 22, 2026

 

 

 

NEW DELHI – The National Company Law Appellate Tribunal has confined insolvency proceedings against Raheja Developers Ltd. to only one project--Krishna Housing Scheme. The interim resolution professional will now issue a corrigendum asking the stakeholders pertaining to Krishna Housing Scheme to submit their claims within 14 days, said the appellate tribunal. It was hearing an appeal from Navin M. Raheja, the suspended director of Raheja Developers, who had challenged admission of insolvency proceedings against the company.

 

The law is well settled that when financial creditors, homebuyers who belong to one project and who file an insolvency application on account of default committed by a corporate debtor with respect to a real estate project, the insolvency proceedings have to be confined to the said project, said the appellate tribunal. Putting all other projects of the corporate debtor in jeopardising condition is not in the interest of homebuyers and other stakeholders of other projects, said the appellate tribunal.

 

Last year, the Delhi bench of the National Company Law Tribunal had admitted pleas by a batch of homebuyers to start insolvency proceedings against Raheja Developers for an unpaid amount of INR 388.97 million. "In the present case, as a matter of fact, the corporate debtor is liable to make payment to all the allottees for the delay in handing over the possession along with the interest," said the tribunal.

 

The tribunal said that since the residential project Raheja Krishna Housing Scheme in Gurugram, Haryana, fell under the Affordable Housing Policy, 2013, Raheja Developers was obligated to complete it and offer possession to the allottees within 48 months, either from the date of environmental clearance or the date of sanction of building plans, both in 2015. Accordingly, Raheja Developers was required to complete the project and hand over possession by 2019, as mandated under the statutory framework and the builder buyer agreement, the tribunal said.

  

The homebuyers had said that they had paid over 90% of the total sale consideration and in most cases, 100% of the demand raised by Raheja Developers, relying on the representations and assurances of the corporate debtor. However, despite such substantial payments, Raheja Developers failed to complete the project or deliver possession by the stipulated deadline, the homebuyers said. Instead, Raheja Developers unilaterally and illegally deferred completion timelines from time to time, without making any substantial progress. Site visits by several financial creditors revealed that construction at the project was negligible and only a few structures had been raised, the homebuyers said.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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