economy

Delhi HC approves ex-management’s revival scheme for Assotech

(File Photo)

NEW DELHI: Delhi High Court on Friday approved a revival scheme proposed by the ex-management of

Assotech

. The court also ordered appointment of a retired Judge as ‘Court Commissioner’ to monitor progress of construction of the three residential projects of the company i.e.

Assotech Windsor Court

, Celeste Towers and The Nest.

All involved parties including the petitioner, official liquidator (OL), Essel Finance, Religare, Celeste Towers, etc have also given consent to the proposal subject to terms and conditions.

The decision was taken after OL filed his report saying that the ex-management is better placed than new bidder to complete construction of the flats and any other option of inviting bidder seems infeasible.

The ex-management will file the said proposal/action plan before the Court and will open an ‘Escrow Account’ and deposit Rs 5 crore within three weeks. OL has been given the task to monitor the escrow account and give monthly report to the court.

Delhi High Court also allowed the ex-management to demand payment from homebuyers as per the agreement and are free to raise loan for the purpose of construction subject to approval of court commissioner.

Apart from OL, the Serious Fraud Investigation Office (SFIO) also filed its report, pointing out that financial statements show that the company has made many investments and are involved in many transactions with related parties and subsidiaries.

The court observed that approx Rs 350 crore has been siphoned by the ex-management.

It hence issued notices to all the parties not to sell off or dispose of any property except by the permission of the court. A show-cause notice has also been issued to the parities as to why such investments were made.

Ashwarya Sinha, advocate representing homebuyers argued that a forensic audit should be carried out.

The court however decided to go ahead with the current revival plan.


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