Tribunal appoints IRP to resolve problems of Appu Ghar investors

The National Company Law Tribunal (NCLT) on Tuesday appointed an interim resolution professional (IRP) to resolve the longstanding problem of investors in International recreation and amusement limited (IRAL), popularly known as Appu Ghar, in six months.

Gaurav Sachdeva, an investor who had moved the NCLT, said, “We are investors-cum-financial creditors of the IRAL. We booked commercial space in the proposed mall, Oyster, and food court in 2011-12. IRAL had committed to offer possession to us by 2015. The company also made an agreement that it would pay interest to each investor till offer of possession. We do not get interest at all. There is no sign of food court or mall construction. The company diverted our hard-earned money, as it said in its affidavit to NCLT, which now has appointed the IRP.”

The tribunal, a quasi-judicial body that adjudicates issues relating to companies, was formed under the Companies Act, 2013, by the Central government.

The investors had moved NCLT six months ago after directors-cum-promoters of the IRAL failed to resolve their problem. The appointment of IRP has brought relief to investors as, according to the provisions of the NCLT, the IRP has to resolve the problem of the company in six months from the date of appointment.

The IRP has called a meeting of financial creditors on Thursday at India International Centre, New Delhi.

“The IRP has called a meeting of investors to form a committee of creditors (COC) to start the process of estimating the bidding process and invite new promoters to buy the IRAL, to bail them out. We wish financially sound companies participate in the bidding and complete the project. The executing power of the board of directors of IRAL has been nullified with the appointment of IRP,” said Harish Bhatia, another investor.

The investors, who held several protests against IRAL in the last six months, want completion of the project and release of the interest.

The Haryana government allotted land to IRAL at Sector 29 near Huda City Centre Metro station at a throwaway price, causing resentment among residents, on whose demand a vigilance inquiry in May 2015 was also marked. However, the report was never made public.

Rakesh Babbar, one of the directors of IRAL, said, “We are fine with the appointment of IRP to resolve the problem. We tried to resolve the issue earlier. Now, the matter is with the NCLT and we will abide by the law.”

First Published: Aug 08, 2018 12:25 IST