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NCLT begins insolvency proceedings against Ansal Properties

By Rishabh Chamoli | 2022-11-22

Acting on a petition filed by homebuyers of a Gurgaon based residential project by Ansal API, the National Company Law Tribunal (NCLT) has directed to initiate the insolvency proceedings against the firm. The move is aimed at strengthening the buyers trust in the system.

In a recent news, a two member bench of the National Company Law Tribunal (NCLT) initiated the insolvency proceedings against Ansal Properties and Infrastructure. More than 120 flat buyers of the project The Fernhill, located in Sector 91, Gurgaon, had moved court when they were not handed over their flats by the realty firm Ansal API even after the grace period came to an end.

Timelines exceeded by Ansal API
The developer had promised to hand over a majority of the booked units in its project The Fernhill located in Sector 91, Gurgaon, within 48 months, by July 2017, which it failed to do. It was then offered the grace period of six months under the clauses of the builder buyer agreement, according to which the developer was supposed to hand over the allotted units by January 30, 2018. However, the said units were not completed even till March 31, 2021. The entire project is still lying incomplete even after the gap of four years.

The verdict by the NCLT bench
In the filed petition presented in front of the NCLT bench, the applicants were able to successfully prove their debt and default on the part of Ansal Properties. The bench noted that since the default was committed above the threshold limit on the part of the developer, the application submitted by the buyers was admitted.

NCLT has also imposed prohibitions against any recovery under suits, transfer of property, disposal of assets of the real estate firm and others under the Insolvency and Bankruptcy Code.