NCLAT restricts insolvency proceedings against Raheja Developers to ‘Raheja Shilas’ project in Gurugram
In a recent development, the National Company Law Appellate Tribunal (NCLAT) has limited the insolvency proceedings against Raheja Developers to its ‘Raheja Shilas’ project located in Gurugram’s Sector 109. This decision comes as a response to flat allottees who petitioned for action after a default of Rs 112.90 crore linked to delayed possession.
Interim Resolution Professional instructed to compile claims and prepare a status report
A three-member bench, chaired by Justice Ashok Bhushan, has directed Raheja Developers to disclose the status of all other ongoing projects. This directive aims to facilitate informed decisions for potential future proceedings related to the developer. The Interim Resolution Professional (IRP) has been assigned the task of compiling claims for the ‘Raheja Shilas’ project and preparing a comprehensive status report.
Furthermore, the IRP will assist the company in obtaining the necessary Occupancy Certificate (OC) and completing the project within the anticipated timeframe of four to eight weeks. This move ensures that the project can be handed over to the allottees promptly.
Demand to extend insolvency process to other incomplete projects
While Raheja Developers had appealed to confine insolvency proceedings solely to the ‘Shilas’ project, intervenors in the case argued for extending the process to other incomplete projects. These intervenors cited numerous delays and unresolved dues with the Directorate of Town & Country Planning (DTCP).
Earlier, in a separate case, the Principal Bench of the National Company Law Tribunal (NCLT) had admitted an insolvency plea from over 40 flat buyers of the ‘Raheja Shilas’ project. This had led to the suspension of the developer’s board and the initiation of a moratorium under the Insolvency & Bankruptcy Code (IBC). The NCLT identified repeated extensions of promised possession dates from 2012-2014 and confirmed a debt default through documented acknowledgments.
A history of insolvency proceedings against Raheja Developers
This is not the first instance of insolvency proceedings against Raheja Developers. Back in 2019, similar action was initiated due to delays in the ‘Raheja Sampada’ project. However, in 2020, this decision was overturned, with the delays being attributed to clearance issues beyond the firm’s control.
Progress report to be submitted by January 22, 2025
As the stakeholders await a resolution to the long-standing issues surrounding Raheja Developers’ projects, the NCLAT has instructed the IRP to submit a progress report by January 22, 2025. This report aims to provide clarity on the steps taken and advances made in resolving the disputes and completing the ‘Raheja Shilas’ project.
Conclusion
The decision of the NCLAT to confine insolvency proceedings against Raheja Developers to the ‘Raheja Shilas’ project in Gurugram brings some hope for the flat allottees who have been grappling with delayed possession. While they wait for a resolution to their grievances, the focus now turns towards the IRP and their role in compiling claims, overcoming clearance issues, and completing the project within the stipulated timeframe.
