NEW DELHI: In a relief to Raheja Developers, the appellate tribunal NCLAT has confined the insolvency proceedings against the realty firm to only one of its projects ‘Raheja Shilas’. However, it has directed Raheja Developers to provide the details regarding the other incomplete projects and the status of all ongoing projects, enabling appropriate orders to be passed.
A three-member bench of the National Company Law Appellate Tribunal (NCLAT) led by Chairperson Justice Ashok Bhushan, directed the Interim Resolution Professional (IRP) to collate the claims related to the project and submit the status report. “We are of the view that, for the time being, as was prayed by the Applicant/Respondent herein, the insolvency may convene to one Project, namely ‘Raheja Shilas (Low Rise),” said NCLAT in its interim order passed on Thursday.
The NCLAT direction came over a petition filed by Navin Raheja, Chairman & Managing Director of the suspended board of the realty firm challenging an order from NCLT directing to initiate Corporate Insolvency Resolution Proceedings (CIRP) against it. The direction came following the request from the realty firm to limit the insolvency to one project, ‘Raheja Shilas’ only.
Flat owners, who submitted the plea on which insolvency was initiated against Raheja Developers, had themselves requested the National Company Law Tribunal (NLCT) to commence the insolvency with regard to the Project to which they were concerned. Senior advocates Arun Kathpalia and P Nagesh appearing for Raheja Developers, further submitted that issues for getting an Occupancy Certificate (OC) from the Directorate of Town & Country Planning (DTCP) are also being sorted out.
Meanwhile, advocate Aditya Parolia and others appearing for intervenors submitted that insolvency should be allowed to commence with regard to all other Projects of Raheja Developers. Still, there are a large number of other Projects which have not been completed by the Developer and there are several issues in addition to the dues of DTCP, which have yet to be addressed by Raheja, they said.
However, NCLAT said Raheja Developers has submitted that between 4 to 8 weeks, the OC is contemplated to be issued, hence the issue in the Insolvency proceedings shall be solved. Moreover, the appellate tribunal also said, “IRP shall take all endeavour with the assistance and management of employees of the Corporate Debtor (Raheja) to obtain the OC and do other completion works which are required for handing over the Project to the allottees.” On Tuesday, the Principal Bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by over 40 of its flat allottees of Sector 109, Gurugram-based projects and had directed to initiate CIRP.
Moreover, the NCLT had also appointed an interim resolution professional (IRP) suspending the board of the realty firm and put it under the protection of moratorium against lenders as per the provisions of the Insolvency & Bankruptcy Code. The NCLT has also directed the IRP to submit a report on the progress of the CIRP by January 22, 2025.
The matter relates to the Raheja Shilas project located at Sector 109, Gurugram, Haryana. Over 40 flat buyers have claimed a default of Rs 112.90 crore against the realty firm. On Tuesday, NCLT in its order had said Raheja Developers has a “debt due and default” against the flat allottees, who had made their payments and delivery of the units was not on time and referred it to CIRP.
The NCLT in its 29-page-long order said possession was to be given in the year 2012-2014 with a grace period of 6 months. However, it was extended further. This debt has been acknowledged via various emails, and the default is continuing, it said. Earlier also, insolvency proceedings were initiated against Raheja Developers in 2019 over a delay in its Raheja Sampada project.
However, in January 2020, it was set aside as the delay in the project was on account of the absence of clearance by the competent authorities, which was beyond its control.
