NCLT orders insolvency process against Ajnara India on homebuyers' plea

NCLT orders insolvency process against Ajnara India on homebuyers' plea

The case was filed against the real estate developer in 2021

The Delhi bench of the National Company Law Tribunal (NCLT) has sent Noida-based real estate developer Ajnara India Ltd into insolvency. The action was taken after 128 homebuyers filed a complaint against it for the delay in the Ajnara Ambrosia group housing project.

Manish Kumar Gupta, along with other buyers, had filed a plea in NCLT under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 to start the Corporate Insolvency Resolution Process (CIRP) against the builder.

The petition said, "It is submitted that the respondent (developer) taking advance payments raised a total financial debt of Rs 50,47,48,426 from the applicants but failed to fulfil its commitments and defaulted in construction of the project."

The tribunal, thus ordered, "The application is admitted in terms of Section 7(5) of the IBC and, accordingly, the moratorium is declared in terms of Section 14 of the Code." (During the 180 days moratorium period, no suit or proceedings can be initiated against the builder).

The bench directed Amarpal, a professional, to head the proceedings of the insolvency resolutions. The bankruptcy court further directed the builder to deposit Rs.2 lakhs to meet the immediate expenses.

Ajnara entered a Builder Buyer Agreement with individuals and companies that owned and possessed the land totaling approximately 1,42,967 sq mt located at plot no GH01, Sector 118, Gautam Budh Nagar, Noida, for the construction of the housing project.

The builder was supposed to hand over 1,600 units to the allottees within three years from the date of signing of the agreement. However, after taking the money from the homebuyers, it raised the loan amount of over Rs.50 crores but defaulted on the construction of the project.