Regarding the 17 developers have been below the corporate insolvency resolution process before the NCLT (National Company Law Tribunal) at Chennai.
Liquidation orders have proceeded opposition of the three buildings, Antony Projects P. Ltd, LCS City Makers P. Ltd, and RRR Housing P. Ltd, stated NCIT Chennai answer to RTI. It stated that in all three cases, the liquidation orders passed in a maximum of 270 days given to found a proper resolution plan for the revival of the firms has passed.
The Chennai bench of NCLT registered the insolvency case against 13 other builders. As per the information, 50 cases are still pending against the builders. Vishwakarma Real Estate and Construction India case, NCIT recently accepted the resolution process for the revival of the company.
Below the Insolvency and bankruptcy code, hardly 270 days are given to finding a plan for revival of the company under the insolvency proceedings. If there is no resolution is found, the company proceeds into liquidation.
Previously, Parliament proceeded a modification to the Insolvency and Bankruptcy Code permitting home buyers to be used as financial creditors, moreover on the same with the banks. “As the amounts paid by home buyers now constitute a financial debt, any delay in handing over of the property as per the commitments in the sale agreements can be grounds for initiating corporate insolvency resolution proceeding under the IBC,” stated the reports of ICRA. This action raises default danger for developers with delayed projects.