September 09, 2019

NCLT Initiates Insolvency Proceedings Against Raheja Developers; Appoints Interim Resolution Professional

[ By Bobby Anthony ]


The National Company Law Tribunal (NCLT) has begun insolvency proceeding against the real estate development company Raheja Developers.

As a part of the insolvency process, a public notice has been issued informing creditors to submit their claims against the National Capital Region-based company.

The NCLT admitted and initiated the insolvency proceedings following a petition by a flat buyer recently.

An interim resolution professional (IRP) has also been appointed by the bankruptcy court to take over the management of Raheja Builders.

The NCLT has also declared a moratorium, protecting the company from lenders by restricting them from recovering the amount for a certain period. It has directed the previous management to provide all relevant documents in their possession and furnish all information.

The development comes after Raheja Developers failed to fulfil a flat buyer's agreement according to which they were to deliver possession of flats within a period of 36 months from August 3, 2012, when it had issued a joint allotment letter.

The NCLT observed that the 36-month period came to an end on August 3, 2015, and the construction was not completed.

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