NCLAT limits Ansal Properties' IBC to projects, assets in Lucknow, Rajasthan
This story was originally published at 18:22 IST on 7 January 2026
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NEW DELHI – The National Company Law Appellate Tribunal on Wednesday confined the Corporate Insolvency Resolution Process against Ansal Properties and Infrastructure Ltd. to the company's projects and assets in Lucknow and Rajasthan. The insolvency will be limited to Mother City, Mother City Extension, and Golf Plots projects in Lucknow and built-up properties in Ajmer, Jodhpur and Jaipur and assets in Rajasthan, the appellate tribunal said.
The appellate tribunal asked the Delhi bench of the National Company Law Tribunal to decide on the mode and manner of proceeding with the project-wise resolution of Ansal Properties. With respect to the Lucknow projects, the Delhi NCLT will consider whether the Lucknow Development Authority should be directed to complete the company's projects, the appellate tribunal said.
The appellate tribunal said the UP Awas Evam Vikas Parishad is entitled to file an application before the Delhi tribunal to exclude the assets it claims from the insolvency proceedings. The Lucknow Development Authority will be made a party to the insolvency proceedings, the appellate tribunal said, adding that homebuyers should file their applications expressing their concerns with the Delhi tribunal.
In 2016, IL&FS Financial Services granted a term loan facility of INR 500 million to Ansal Properties, and thereafter granted another term loan facility of INR 1 billion. IL&FS Financial Services said Ansal Properties defaulted and committed various breaches under the loan agreement. Though a settlement agreement was signed between the two parties, Ansal Properties made only partial payments to IL&FS Financial Services.
Rejecting the settlement agreement, IL&FS Financial Services called upon Ansal Properties to pay the total dues of INR 2.57 billion as per the loan agreement. When Ansal Properties failed to pay the amount, IL&FS Financial Services moved the Delhi NCLT to initiate insolvency proceedings against Ansal Properties, which was admitted in 2025.
Thereafter, Pranav Ansal, the suspended director of Ansal Properties, and certain homebuyers of projects developed by Ansal Properties moved the appellate tribunal against the initiation of insolvency proceedings. Lucknow Development Authority and other development authorities also filed applications in the appellate tribunal.
The petitioners argued that the initiation of insolvency proceedings against Ansal Properties would jeopardise and prejudice the company's real estate projects and cause irreparable loss, harm, and injury to thousands of homebuyers. In view of the Memorandum of Understandings, the Lucknow Development Authority was entitled to take over the project in the event that Ansal Properties failed to develop it, the authority said.
Wednesday, Ansal Properties' shares ended 1.5% lower at INR 3.20 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Saji George Titus
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