Lokhandwala Infrastructure, a Mumbai-based real estate developer has gone bankrupt with the National Company Law Tribunal (NCLT) ordering that insolvency proceedings should be started against the firm under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The NCLT has set up a deadline for the submission of claims and has asked financial creditors, homebuyers and employees to submit their claims with proof by October 3. The Mumbai bench of NCLT restricted the developer from creating any third-party rights or disposing of any assets.
Lokhandwala Infrastructure is the second big developer to go insolvent under the provisions of the Insolvency and Bankruptcy Code (IBC) after Housing Development and Infrastructure Ltd (HDIL). On August 26, the NCLT had initiated insolvency proceedings against HDIL on August 26 after it failed to repay dues to the tune of Rs 522 crore to Bank of India.
The NCLT, presided over by justices VP Singh and Rajesh Sharma, appointed Ajit Kumar as the interim Resolution Professional, who will take over the management from the promoters and will try to formulate a new revival plan for the company. According to a notice issued by Ajit Kumar, the Mumbai Bench of NCLT ordered the initiation of the process on September 19 and hopes to conclude it by March 17, 2020.
Dalmia Group Holdings, one of the investors, approached the tribunal after the builder failed to make quarterly payment as per the agreements. Dalmia Group had invested Rs. 41 crore in Lokhandwala Infrastructure in lieu of two floors at its upcoming property in Lokhandwala Business Bay in the northern suburbs of Mumbai.
The builder had entered into a buyback agreement with the Dalmia Group to acquire all six units on two floors and to pay 21% annual interest on a quarterly basis. However, the developer failed to honour the agreement. The financial creditor - Dalmia Group has claimed total dues of over Rs. 36 crore including interest dues.