NCLAT restricts Insolvency against Raheja to One project - Asks Report for other Projects

Relieving Raheja Developers, the appellate tribunal NCLAT has restricted the insolvency proceedings against the real estate firm to just one of its projects, 'Raheja Shilas.'

The company has been instructed Raheja Developers 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 three-member National Company Law Appellate Tribunal - NCLAT, headed by Chairperson Justice Ashok Bhushan, instructed the interim resolution professional (IRP) to gather the project-related claims and submit a status report.

As the Applicant/Respondent herein prayed, the insolvency may convene to one project, namely 'Raheja Shilas (Low Rise),' according to the interim order passed on Thursday.

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 direction was given after the realty firm requested that the insolvency be limited to one project, 'Raheja Shilas.'

Insolvency proceedings against Raheja Developers were initiated by the National Company Law Tribunal - NLCT after flat owners filed a plea for insolvency against the developer.

Arun Kathpalia and P Nagesh, representing Raheja Developers, further argued that issues related to obtaining an Occupancy Certificate (OC) from the Directorate of Town & Country Planning (DTCP) are also being addressed.

The appellate tribunal further stated that "IRP shall endeavor to assist and manage the employees of the corporate debtor (Raheja) in obtaining the OC and carrying out other completion tasks required for handing over the project to the beneficiaries.