on Thursday became the third major Noida-based developer after Jaypee and Amrapali to become embroiled in insolvency proceedings. In response to a plea by buyers who have not received their flats, the National Company Law Tribunal (
) appointed an interim resolution professional to resolve the financial liabilities of Granite Gate Company, the 3C subsidiary that is building its ‘Lotus’ brand projects —Panache and Boulevard.
The IRP has a maximum 270 days for the resolution, following with the two projects could be pushed into liquidation. This will directly affect around 3,500 buyers who are yet to get their flats in Lotus Panache (Sector 110) and Lotus Boulevard (Sector 100).
The NCLT stepped in after a small group of aggrieved homebuyers approached it last year when their demand for refund of investments was turned down by 3C.
The developer has missed several deadlines for completion of the two projects. The homebuyers’ plea to start insolvency proceedings was allowed by a two-member bench headed by NCLT president Justice M M Kumar.
The homebuyers’ group, Lotus Panache Welfare Association (LPWA), told TOI it would appeal to the IRP to uphold the rights of investors during the course of the resolution. It also indicated moving the Supreme Court with a plea for a forensic audit of 3C to find out how their money had been “diverted” to other projects.
“We would like to meet and urge the IRP to give highest priority to homebuyers’ rights in matters of resolution. We may also move the apex court to find out where all the buyers’ funds went,” said Amit Chauhan, a buyer at Lotus Panache.
“The insolvency bid was raised by a group of buyers who had earlier asked the builder to refund their dues in lieu of being financial creditors to the company. The IRP has 180 days to resolve the matter, with the provision of 90 days extra to close it. The buyers in this case are to be considered financial creditors,” said Aditya Parolia, partner PSP Legal, which is representing 3C buyers.
None of the 3C company’s ‘Lotus’ brand projects is complete, except Espacia. “While the NCLT has started proceedings against Granite Gate, we presume this development will affect all other 3C Company projects in due course of time,” Parolia added.