A national insolvency tribunal has ordered the initiation of insolvency proceedings against a real estate firm following a petition filed by homebuyers of one of its housing projects in Gurgaon. The tribunal stated that the firm has a “debt due and in default” toward the allottees, who had made substantial payments but did not receive timely possession, and therefore referred the matter for the Corporate Insolvency Resolution Process (CIRP).

The tribunal admitted the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against the real estate developer. A two-member bench also appointed an interim resolution professional to oversee the process.

Possession of the units was originally promised between 2012 and 2014, with an additional grace period of six months, but the handover was further delayed. The tribunal noted that the delay and the outstanding dues were acknowledged in multiple communications, and the default continues.

The case pertains to a residential project located in Sector 109 of Gurugram, where over 40 homebuyers have claimed a default of ?112.90 crore by the developer. Petitioners stated that they had paid more than 95% of the total sale value and fully complied with all payment demands issued to date.

Previously, insolvency proceedings were initiated against the same developer in 2019 over delays in another housing project. However, the proceedings were set aside in early 2020 after it was determined that the delays were due to pending approvals from competent authorities, which were beyond the developer’s control.

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