NCLAT again limits Insolvency Proceedings against Raheja Developers's Project 'Raheja Shilas'

The NCLAT has relieved Raheja Developers by limiting the insolvency proceedings against the real estate firm to just one of its projects, 'Raheja Shilas.'

Navin Raheja, Chairman and Managing director of the suspended board of the real estate firm, filed a petition challenging an order from the NCLT directing the initiation of corporate insolvency resolution proceedings (CIRP) against it.

The company has been instructed to provide details regarding the other incomplete projects and the status of all ongoing projects, in order to enable appropriate orders to be passed.

The Interim Resolution Professional (IRP) was directed to collate the claims related to the project and submit a status report by a three-member bench of the National Company Law Appellate Tribunal.

The directive was issued after the real estate firm requested that the insolvency be restricted to one project, 'Raheja Shilas,' exclusively. The flat owners who submitted the plea on which insolvency was initiated against Raheja Developers had themselves requested the National Company Law Tribunal to commence the insolvency.

There are issues for getting an Occupancy Certificate from the Directorate of Town & Country Planning, according to senior advocates Arun Kathpalia and P Nagesh appearing for Raheja Developers.

Aditya Parolia and others appearing for the intervenors submitted that insolvency should be allowed to commence with regard to all other projects of Raheja Developers. The developer hasn't finished a lot of other projects, and there are a few issues beyond the DTCP dues that Raheja hasn't addressed yet.