The National Company Law Tribunal has ordered insolvency proceedings against Raheja Developers, a real estate developer based in Delhi, due to a petition from flat buyers of its Shilas project in Gurgaon. The NCLT determined that Raheja Developers owes money to these buyers, who had paid for their flats but did not receive them on time. The case is now part of the Corporate Insolvency Resolution Process.
The tribunal confirmed that the application for initiating proceedings was accepted. A two-member panel of the NCLT, including President Justice Ramalingam Sudhakar and AK Srivastava, has appointed Manindra K Tiwari as the Interim Resolution Professional for the company.
The NCLT stated that Raheja Developers has defaulted on its debt by not delivering the flats as agreed. The expected delivery was between 2012 and 2014, with a possible six-month grace period, but this was extended further. The default has been acknowledged in various emails, and it continues.
The issue involves the Raheja Shilas project located in Gurugram, where over 40 buyers are claiming a total of Rs 112.90 crore in defaults. The buyers reported having paid more than 95% of the sale price, as well as all demands made by Raheja Developers, yet they have not received their flats, even within the extended timeline.
In its defense, Raheja Developers claimed the four-year delay was due to circumstances beyond its control, which it argued was included in their agreement. The company also pointed out that the number of petitioners is less than 10% of all buyers, questioning the petition’s validity.
However, the NCLT dismissed this argument, stating that the delay cannot be classified as beyond the company’s control since it involves litigation with a government department. The tribunal noted that the challenges faced by Raheja Developers are typical obstacles in real estate projects for which the company must find solutions. The NCLT emphasized that the company cannot escape its responsibilities by citing force majeure or claims from government authorities.
Advocate Aditya Parolia represented the group of buyers from the Revanta, Vanya, and Aranya projects.
This is not the first time insolvency proceedings have been initiated against Raheja Developers; similar actions were taken in 2019 regarding delays in the Raheja Sampada project. However, those proceedings were halted in January 2020 because the delays were due to a lack of necessary approvals, which was beyond the company’s control.