The National Company Law Tribunal (NCLT) Thursday gave nod to start insolvency proceedings against NCR-based real estate firm Granite Gate Properties, after homebuyers complained about the firm's inability to complete the project.
Admitting the plea of three homebuyers, a two-member bench headed by NCLT President Justice M M Kumar allowed the insolvency plea against Granite Gate Properties, which is developing housing project Lotus Panache in Noida.
Granite Gate, a group firm of the 3C Company, is developing over 3,000 flats in this project, which was launched in 2010.
After the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, homebuyers have been granted the status of financial creditors under the ordinance.
The buyers had approached the tribunal after the builder failed to deliver flats and refund their advance money.
Many real estate firms, including Jaypee Infratech and Amrapali, are facing insolvency proceedings for not delivering projects on time.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)