3C Company's Subsidiary To Face Insolvency Proceedings
Over 3,500 homebuyers who have invested 3C Company’s Lotus projects, Lotus Panache in Sector 110 and Lotus Boulevard, are staring at uncertain times. A two-member bench headed by National Company Law Tribunal (NCLT) president Justice M M Kumar will finally begin insolvency proceedings against the company after small groups of aggrieved homebuyers approached the tribunal for help after the developer firm turned down their request for refunds.
This is the third big realtor in the national capital region after Jaypee and Amrapali against which the NCLT has accepted an insolvency petition.
Last year, a couple, who booked a flat in the project in 2010, had moved the National Company Law Tribunal (NCLT) against 3C Company, part of the Granite Grate Properties. According to their submission, they paid 90 per cent of the unit cost by 2015, and asked for a refund from the company earlier this year. Since no refund was given, the couple decided to move the NCLT.
Through a plea filed on July 27, the buyers had been seeking liquidation of all projects. The NCLT had sent a notice to the company asking it to respond.
Their move ─ the first such after homebuyers were awarded the status of “financial creditors” in insolvency proceedings through a change in the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, on June 6 ─ indirectly affect as many as 10 projects of the company as project completion is far from some sight in projects
Things of the past
In January this year, 4,000 homebuyers launched a Twitter campaign — #4000HomelessFamilies — to protest the delay in delivery of homes by 3C. These buyers who invested their money in the Sector 110 project, Lotus Panache, between 2009 and 2010, were promised delivery of their homes in 2012.
Before the launch of this campaign, buyers had also demonstrated outside the house of one of the company directors. While about 100 buyers repeating the action in April again, they also spoke of forming a human chain near the Prime Minister’s Office to make their protest.
“We have organised protests in front of the houses of each of the three directors of the company. We have also filed an FIR earlier this year under Section 420 and 406. We have met the builders several times and have been told that fund was being organised,” Association General-Secretary Sushil Kumar was quoted in the media as saying.
Not just Panache and Boulevard, homebuyers in other 3C projects such as Lotus Zing (Sector 168), Lotus Boulevard (Sector 100), Greenopolis, Sector 89 Gurgaon and Woodview in the same sector are also affected. Buyers are calling in for legal supervision while many have formed groups and approached lawyers to take the matter forward. In due time, they expect their cases to be taken up.