Raheja Developers Faces Insolvency Proceedings After Homebuyers File Petition in NCLT
Raheja Developers, a leading real estate company in Gurugram, India, is facing insolvency proceedings due to complaints from over 40 flat buyers. The National Company Law Tribunal (NCLT) has initiated Corporate Insolvency Resolution Proceedings (CIRP) aft
Raheja DevelopersNcltInsolvency ProceedingsRaheja ShilasReal EstateReal EstateNov 25, 2024
The buyers claimed that they had made significant payments towards their units but had not received possession within the stipulated timelines, which were originally set between 2012 and 2014. The NCLT found that Raheja Developers had a 'debt due and default' against these flat buyers and ordered the initiation of Corporate Insolvency Resolution Proceedings (CIRP). The corporate debtor had defaulted on a payment of Rs 113 crore.
However, Raheja Developers challenged this order before the National Company Law Appellate Tribunal (NCLAT). In a significant relief for the company, the NCLAT stayed the insolvency proceedings and limited them to the Raheja Shilas project only. The tribunal also directed the Interim Resolution Professional (IRP) to collate the claims related to this project and submit a status report.
It is important to note that this is not the first time Raheja Developers has faced insolvency proceedings. In 2019, similar proceedings were initiated against the company due to delays in the Raheja Sampada project. However, these proceedings were later dismissed as the delays were attributed to factors beyond the company’s control, such as regulatory approvals.
The current situation highlights the challenges faced by the real estate sector in India, where delays in project completion and delivery are common. It also underscores the importance of timely project execution and adherence to contractual obligations for developers.
The New Delhi bench of NCLT has appointed Manindra Kumar Tiwari as the interim resolution professional in the case. Tiwari will now invite claims from financial and operational creditors of the Gurugram-based developers.
Frequently Asked Questions
What is the main reason Raheja Developers is facing insolvency proceedings?
Raheja Developers is facing insolvency proceedings due to complaints from over 40 flat buyers who alleged delays in the delivery of their units at the Raheja Shilas project in Sector 109, Gurugram.
What was the initial order by the NCLT in response to the complaints?
The NCLT ordered the initiation of Corporate Insolvency Resolution Proceedings (CIRP) after finding that Raheja Developers had a 'debt due and default' against the flat buyers.
How did Raheja Developers respond to the NCLT's order?
Raheja Developers challenged the NCLT's order before the National Company Law Appellate Tribunal (NCLAT).
What was the outcome of the NCLAT's decision?
The NCLAT stayed the insolvency proceedings and limited them to the Raheja Shilas project only, directing the Interim Resolution Professional (IRP) to collate the claims related to this project and submit a status report.
Who has been appointed as the interim resolution professional in this case?
Manindra Kumar Tiwari has been appointed as the interim resolution professional by the New Delhi bench of NCLT.
Related News Articles
Luxury Real Estate Boom: India's High-End Property Market Sees Unprecedented Growth
Over 8,500 luxury units sold in H1 2024, with Delhi-NCR, Mumbai, and Hyderabad leading the charge. The luxury real estate market in India is expected to continue its upward trend.
Boosting the Real Estate Sector: Expectations from Budget 2024
Real estate experts hope for industry status, single-window clearance, and affordable housing in Budget 2024.
Government's LTCG Tax Amendment to Boost Homebuyer Confidence and Revitalise Real Estate Market
The government's recent amendment to the Long-Term Capital Gains (LTCG) tax has been hailed as a game-changer for the real estate sector.
Real Estate vs Mutual Funds: Which Investment Avenue Should You Choose?
Investing in real estate or mutual funds requires careful consideration of market conditions, tax implications, and personal risk profiles.
Conrad Steele Joins Jones Day as Partner in Real Estate Practice
Legal powerhouse, Jones Day, has announced the addition of Conrad Steele as a partner in their Real Estate Practice. Discover the impact of this strategic hire and how it enhances the firm's capabilities in the real estate sector.
Key Infrastructure Sectors Witness Slower Growth in September
Infrastructure, real estate, building, budget. Growth rates in key sectors such as coal, fertiliser, and steel have moderated, while cement and refinery products show positive trends.