NCLAT Limits Insolvency Against Raheja to One Project, Seeks Report

Photo : Reuters

Raheja Developers got some good news from the NCLAT (National Company Law Appellate Tribunal). The tribunal decided that the insolvency case will only apply to one of its projects called Raheja Shilas.

The NCLAT said that the company should give more details about other unfinished projects, so it can make decisions about them later. The tribunal asked the Interim Resolution Professional (IRP) to gather information about any claims for the Raheja Shilas project and send a report.

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This decision came after Raheja Developers’ chairman, Navin Raheja, asked the court to only focus the insolvency case on Raheja Shilas. The court had earlier ordered the company to start the insolvency process for the whole company, but Raheja said it should only affect this one project.

The flat buyers who started the insolvency case only wanted it to affect Raheja Shilas. Raheja’s lawyers said that the company is working on getting the Occupancy Certificate (OC) for the project, which is an important document that allows the flats to be occupied.

But other people in the case said the insolvency should cover all of Raheja’s projects because many are still incomplete. They also pointed out other issues, like unpaid fees to the Directorate of Town and Country Planning (DTCP).

The NCLAT said that Raheja Developers told them the OC should be ready in 4 to 8 weeks, which should help solve some of the issues in the insolvency case. The tribunal also asked the IRP to work with Raheja’s employees to get the OC and finish any remaining work, so buyers can get their flats.

Earlier this week, the NCLT (National Company Law Tribunal) accepted a request from over 40 flat buyers of Raheja Shilas who said they were owed ₹112.90 crore because of delays in getting their flats. The NCLT decided to start the insolvency process, suspend the company’s board, and stop creditors from taking action against the company.

The NCLT also asked the IRP to submit a report on the progress of the case by January 22, 2025. The buyers said they were supposed to receive their flats between 2012 and 2014, but the delivery was delayed. They showed emails proving the debt and that the company had not paid them.

This is not the first time insolvency has been filed against Raheja Developers. In 2019, there was a case about another project, Raheja Sampada. However, in 2020, the case was dismissed because the delays were caused by the company not getting necessary approvals, which was out of their control.

For now, the NCLAT’s decision on Raheja Shilas will stand. Raheja Developers must follow the court’s instructions and give more information about its other projects. This will help decide what happens next for the company.

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