Another Greater Noida developer faces bankruptcy proceedings
The National Company Law Tribunal (NCLT) has launched a Corporate Insolvency Resolution Process (CIRP) against a developer in Greater Noida – The Residentia Developers Private Limited – for allegedly failing to pay ₹28 lakh he owed a contractor, officials said on Tuesday.
The contractor, Singhal Pipes, had filed in 2020 a motion seeking CIRP against LA Residentia to recover ₹28 lakh dues including interest. On May 25, the NCLT appointed Naveen Kumar Jain as an Interim Resolution Professional (IRP) to make all business-related decisions in place of the original promoters who had failed to pay dues.
According to the NCLT, it will take 180 days (from May 25) to complete the CIRP against the developer. As part of the process, homebuyers and lenders can file their financial claims until June 8. The IRP will form a committee of creditors (COC) that will invite bids from new businesses that want to take over the debt-ridden company, officials said.
Homebuyers, however, for whom possession has already been delayed for more than a decade, are wondering about the development.
“We don’t trust the developer – they can’t pay ₹28 lakh due to a contractor. He started the CIRP to shirk his responsibility as he does not provide us with the basic facilities and is unable to honor the commitments made to us,” said Sumil Jalota, a buyer.
Residentia Developers Private Limited had, in 2010, started work on this 20-acre sprawling project at Techzone-IV in Greater Noida West with the promise of delivery in 2015. It was to develop 3,256 units in 39 residential towers . However, so far only partial works on 20 towers – in which around 1,200 families live since 2016 – have been completed. The remaining towers are still incomplete, according to the alleged buyers.
For more than a month, homebuyers have staged protests against the developer for failing to provide them with even basic facilities such as elevators, water supply, adequate electricity and security appliances, among others.
“The developer does not want to honor the agreement with us and wants to shirk its responsibilities,” alleged Abhishek Chauhan, a buyer.
Another buyer, Harish Sharma, said: “We are frustrated because we think we will never get justice this way.”
Meanwhile, developers said they were looking for solutions.
According to Kulbhushan Bajaj, one of the developers, “We are honestly working to overcome the crisis and deliver apartments because buyers deserve justice at all costs. Due to legal issues, this project ran into problems. Buyer claims that we voluntarily went to NCLT are not true, but we are unable to deliver on our promises due to legal complexities. We are trying to find solutions.