NCLAT Limits Insolvency to One Project

27 Nov 2024 CW Team

In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) has confined the insolvency proceedings against Raheja Developers to a single project, Raheja Shilas in Sector 109, Gurugram. The appellate tribunal's three-member bench, led by Justice Ashok Bhushan, directed that the Interim Resolution Professional (IRP) collate claims and submit a detailed status report on the project.

The decision came in response to a petition by Navin Raheja, Chairman of the suspended board, challenging an earlier National Company Law Tribunal (NCLT) order that initiated Corporate Insolvency Resolution Proceedings (CIRP) for the entire company. The NCLAT limited insolvency proceedings to Raheja Shilas following requests from flat buyers and the developer.

Raheja Developers assured the tribunal that an Occupancy Certificate (OC) for the project is expected within 4 to 8 weeks, addressing one of the primary concerns raised by the petitioners. The IRP has been instructed to assist in securing the OC and completing the necessary works to ensure the project’s handover to allottees.

The case stems from complaints by over 40 flat buyers who cited a payment default of ?112.90 crore due to delayed possession, which was initially promised between 2012 and 2014. The NCLT admitted their plea earlier this week and directed the CIRP's progress report submission by January 22, 2025.

This isn’t the first time Raheja Developers has faced insolvency proceedings. A similar case involving the Raheja Sampada project in 2019 was set aside in 2020, as delays were attributed to the absence of requisite clearances. However, the ongoing scrutiny highlights persistent challenges in the timely delivery of residential projects.

The latest NCLAT decision provides temporary relief to Raheja Developers but underscores the need for improved project management and transparency to restore buyer confidence.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..