The National Company Law Tribunal (NCLT) has admitted a petition of Bank of Baroda against Amrapali Silicon City, real estate major Amrapali group company, on loan default.
The principal bench of the NCLT, headed by Justice M M Kumar, would appoint an interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.
"The NCLT has admitted the insolvency plea against Amrapali Silicon City Pvt Ltd," Amrapali group Director Shiv Priya told PTI while confirming the move.
Amrapali Silicon City has only one project in sector 76 Noida, UP, and nearly 1,000 flat buyers would be affected by an NCLT order.
It has already given possession to some 2,000 flat buyers.
The company has defaulted on a loan of around Rs 55 crore taken from Bank of Baroda, said Shiv Priya.
Last month, the Allahabad bench of NCLT had admitted the plea of IDBI Bank relating to default of Rs 526 crore loan by Jaypee Infratech and appointed an IRP for it.
However, the apex court today stayed the insolvency proceedings against real estate firm Jaypee Infratech on a plea seeking protection of interests of hassled homebuyers who have neither got homes nor their money back.
The Amrapali group has liabilities of about Rs 3,000 crore towards the authorities and owes over Rs 1,000 crore to about 10 banks, while it needs about Rs 3,000 crore to complete its ongoing projects.
The company had launched 11,000 units in Noida, of which 8,500 have been delivered and 2,500 are pending.
Thousands of buyers have been protesting against huge delays in completion of projects.