The National Company Law Tribunal (NCLT) has agreed to initiate insolvency proceedings against real estate developer Ansal Properties & Infrastructures (Ansal API). The decision was based on the petition filed by 126 buyers of “The Fernhill”, a much-delayed project by the company.
A two-member bench of the NCLT had admitted to hearing the plea of 126 flat & villa buyers of the project “The Fernhill” which is at Sector 91, Gurugram.
In their petition, the buyers alleged that Ansal API had delayed and defaulted in delivering the project within the promised timeline. The plea also stated that the project could not be completed even after the grace period was granted within the clauses of the formal builder & buyer agreement for the project.
“The applicants have succeeded in proving their debt and default on the part of the Respondent in the instant case. Hence, in the given facts and circumstances, the present Application being complete and the default being committed above the threshold limit, the present Application is admitted,” NCLT said in its order.
The NCLT also restricted & prohibited against any other recovery under suits, transfer of property, disposal of assets of the real estate company and others under the Insolvency & Bankruptcy Code.
The buyers of the project, in their plea, had alleged that Ansal API had promised a 48-month possession period for the said units, which ended in July 2017 for a majority of the allottees/applicants.
The NCLT also took note of the fact that even after including the grace period the said units were not completed. The grace period ended by January 30, 2018, and the said units were not completed until 31 March 2021.
The NCLT judgment was based upon the fact that the entire project was lying incomplete & unfinished even after four years after the promised delivery date..
(The writer is CEO, Track2Realty)
Ravi Sinha is a journalist with nearly two decades of cross-discipline media exposure. He is the CEO of real estate think-tank group Track2Realty. He has been writing extensively on the real estate sector for nearly a decade. Evaluation of real estate brand performance is his expertise and he has immense insight into consumers’ psychograph in the property market.
Twitter: https://twitter.com/ravitrack2media
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