Six years of IBC - impact on Real Estate sector

Six years of IBC 2016 www.infralive.com 31 InfraLIVE January 15, 2023 Amrapali Group also failed to comply with its obligation under the subvention scheme, the tenure of which was approved by the banks/ financial institutions. Bank of Baroda filed petition for initiatingCIRP In August 2017, one of the financial creditors Bank of Baroda approached the NCLT, New Delhi under section 7 of the IBC Act 2016 for initiating CIRP against three Amrapali Group of companies ( Amr a p a l i S i l i c on Pv t L t d , Amrapali Infrastructure Pvt Ltd and Ultra Home Construction Pvt Ltd) for defaults in making pay- ment of debts/loans. Principal Bench of NCLT admitted these petitions on September 4, 2017, September 25, 2017, andOctober 4, 2017 respectively, appointed IRPs and issued moratorium orders under section 14 of the IBC 2016. Issuance of Moratorium orders restricted the institution of any suits against the corporate debtor (CD) including execution of any judgment, decree or order; trans- ferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal interest therein; and any action to foreclose, recover or enforce any security interest created by the CD in respect of its property under the Securitisation and Reconstruction of Financial Assets and Enforce- ment of Security Interest Act, 2002 (SARFAESI Act). Homebuyers rushed to the SupremeCourt Therefore, the order of NCLT had a di rec t bear ing on the homebuyers of Amrapali Group. Thus, in order to secure their i n t e r e s t , l a r g e n umb e r o f homebuyers filed petitions in the Sup r eme Cou r t a g a i n s t t he Amrapali Group for protection of their lifetime-savings invested in these projects. The petitioners submitted that home buyers have put their lives at stake by paying their lifetime savings and hard-earned money in withworld-class amenities. Falling prey to the lucrative advertisements, large number of home buyers booked their apart- ments in the projects launched by Amrapali Group during the period 2008-2014 on the basis of Allot- ment letters/ Builder-Buyer's agreements which were mostly one-sided in favour of builders/ promoters. The buyers invested their life-long savings and some of them had obtained the home loan from the banks as well. Most of the buyers have made the payment to the extent of 50 per cent to 100 per cent abiding by the payment schedule. The dreams of the buyers of obtaining house were given serious jolts when the promoter started breaching their obligations to deliver the flats within 36 months. Further, the promoters did not pay the dues amount either to the Noida or Greater Noida Authority and also to the Banks. Several revised dates of possession were fixed unilaterally, but they failed to deliver the flats. The