NCLT initiates insolvency proceedings against Rajesh Projects

NEW DELHI: The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Rajesh Projects under Section 7 of the Insolvency and Bankruptcy Code 2016.

The court has appointed Gaurav Katiyar as the interim resolution professional (IRP) for the case. The court directed the IRP to make public announcement within three days of the order.

The home buyers through their advocates Piyush Singh and Aditya Parolia of PSP Legal pleaded that they had booked two apartments in company’s RG Luxury Homes situated in Sector 16-B, Greater Noida in 2012. They paid Rs 86.64 lakh (approx) for the apartments.

The project was to be delivered by 2016 with a grace period of three months. The project is yet to be delivered.

Buyers further pleaded that the builder had promised assured monthly returns and in case of delay it promised to pay compensation at Rs 10 per sq ft per month of the built-up area of the apartment. According to the buyer’s plea about Rs 1.33 crore is due.

NCLT also noted that Rajesh Projects has failed to comply with settlement terms in an insolvency case which had taken place in 2018.

The buyer has been ordered to deposit Rs 2 lakh to the IRP to meet the expenses to perform his function within three days of the order.

The court has ordered a stay on all ongoing/pending suits or proceedings against Rajesh Projects. It has also prohibited the company from transferring, encumbering or disposing of its assets. Any foreclosure of company’s assets or recovery of any property by an owner or lessor where such property is occupied by or in the possession of the company has also been prohibited.

The ex-management of the company has been directed to provide all documents in their possession and furnish every information within a period of one week from the admission of the petition to the IRP.

Source:https://realty.economictimes.indiatimes.com/news/regulatory/nclt-initiates-insolvency-proceedings-against-rajesh-projects/71263290


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