Lucknow The National Company Law Tribunal (NCLT) has imposed a moratorium on Rohtas projects in Lucknow and appointed an interim resolution professional (IRP) on the complaint of home-buyers who had moved an application against the defaulting realtor under the Indian Bankruptcy Code (IBC).
The tribunal has appointed Kamal Piyush as interim resolution professional (IRP) to redress the grievances of the home-buyers. The order was passed by KK Vohra, member (technical) and R Vardharajan, member (judicial) of the NCLT Bench (III) in New Delhi on the complaint moved by Gautam Mullick and four other allottees against Rohtas for the delay in the delivery of possession of their plots.
Mullick, Sachin Gupta, Abhishek Kumar, Ramesh Chandra and Sangeeta Srivastava each booked a plot with Rohtas Projects under their acre scheme on Sultanpur and Rae Bareli Roads in 2013-15 and paid a total of Rs 59.38 lakh.
Under the builder-buyer agreement, the realtor was supposed to provide possession within 24 months. But more than five years later they were yet to get possession of the plots, said the homebuyers, adding that they had lodged several FIRs against the developer with the Hazratganj police. The police investigations, they claimed, had confirmed fraud committed by the realtor who is now in jail.
The order comes at a time when UP Real Estate Regulatory Authority (UP RERA) had only a couple of days ago managed to rope in a developer to complete Rohtas’s stuck Sultanpur Road project which has 2,500 homebuyers. “I will not be able to comment on the outcome of the NCLT order as I have not seen it as yet. All I can say at this point is that any order under Indian Bankruptcy Code will have an over-riding effect on the orders of any other regulatory body,” said UP RERA secretary Abrar Ahmed.
“The amended IBC has empowered home-buyers and allottees by putting them at par with secured financial creditors, as a result of which even a single home-buyer or allottee of a real estate project can now invoke its provisions and get Corporate Insolvency Resolution Process (CIRP) started against an errant developer in case of default or delay in handing over possession,” said Rahul Sharma, a chartered accountant and RERA expert.
What the appointment of interim resolution professional (IRP) means:
- After the appointment, the management of the company will be in the hands of the IRP.
- As per the provisions of the IBC code, no other proceedings can be initiated against the company.
- No continuation of any pending cases.
- No execution of any judgment/ order in any court, tribunal, arbitration panel or other authority.
- The said company cannot transfer/ dispose of its assets or create any legal right or interest upon it.
- No enforcement on interest on any property upon which any right/ interest was created by the company in the past to avail of any facility.
Future prospects of the projects after the appointment of IRP:
- After detailed assessment of the company’s financial equation, the IRP may submit a resolution plan for its revival. The same has to be approved by the majority of the creditors in their meeting.
- If the resolution plan does not get accepted then the NCLT shall pass an order for the liquidation of the company.
- After the liquidation order, the company’s assets shall be disposed of to pay the liabilities as per the provisions of the IBC code.
Source- Hindustan Times.