NCLT Orders Insolvency Proceedings Against Chennai Developer
In yet another case of a real estate developer staring at insolvency, a Chennai-based builder has been dragged into the insolvency tribunal by a group of homebuyers. The Chennai Bench of the National Company Law Tribunal (NCLT has directed commencement of insolvency proceedings against Green Peace Construction after the members of Ajanta Flat Owners Association filed a petition against the developer. Muthuiah Thevar Rajapandian will be the interim resolution professional.
In their petition, the members have claimed that the developer has to pay them dues to the tune of Rs 1.15 crore and an additional interest of Rs 31 lakh. These members have represented themselves as the operational creditor in this case.
Green Peace, a company launched in 1995, has developed over 10 lakh square foot of residential and commercial real estate across the city. The developer has over 55 completed and five under-construction projects.
Ajanta Flats is one of the projects the developer had constructed in 2013. Fifty-four apartments, in this project located in Anna Nagar, were constructed in a joint association between the society members and the developer. This agreement included a clause that in case a structural defect is found by the flat owners within 18 months of possession of these apartments, the developer would have to fix the defects without any monetary liability on the dwellers.
However, the members of the homebuyers’ association claim that the developer did not complete the substantial work for facilities, including gensets, lift, external paintings, provision of the reticulated gas connection and gym equipment. Later, the homeowners completed the work on their own for which the developer promised to compensate them. But, the developer has failed to do so, the homeowners claim.