Following the insolvency declaration of Paramount Prop Built Ltd by the National Company Law Tribunal (NCLT), the prospect of getting possession of flats for hundreds of buyers has been greatly affected. It has also impacted the registration of flats.
The whole story began with the complaint of a vendor who was supplying the concrete bricks for construction. The vendor had complained to the NCLT against the developer for not clearing his dues. After that, some other vendors approached NCLT with similar kind of grievances. The NCLT had then declared the Paramount real estate company insolvent.
Meanwhile, the home buyers are at the receiving end. After a long wait, they started getting possession of flats but things have now been halted.
Paramount real estate has four housing projects in Noida, Greater Noida and Ghaziabad. More than 10,000 home buyers have invested their money in four projects – Paramount Emotions and Paramount Golf Forest in Greater Noida, Paramount Floor Ville in Noida Extension and Paramount Symphony in Crossings Republik, Ghaziabad.
The NCLT dismissed the authority of the director of the real estate company and appointed its own Interim Resolution Professional (IRP) to look into the matter. “The order triggering corporate insolvency resolution was passed on November 16, 2018, however, the Interim Resolution Professional (IRP) was appointed,” a directive of NCLT issued on this matter read.
The NCLT’s directive further also read, “At present only one class of creditors – the allottees/investors under the real estate project is being considered.”
This legal issue caused panic among flat buyers. Flat registration and different works in buildings such as electricity connection, water connection, and many more were stopped.
The flat buyers, who have already shifted, are forced to survive without basic amenities. Rohit Gupta, a flat buyer said, “Nearly 100 families have been living in Paramount Emotions and nearly 1400 are yet to shift here. We got the possession but flats are incomplete. The security is at the negligible stage. Vendors, who are working on several works like cable connection, whitewash, plumbing, have stopped working.”
Satish Gautam, another flat buyer of Paramount Emotions said, “I had planned to shift into my new flat last week but it could not happen because necessary works in flats are yet to be done. We have no idea when this issue would be resolved and remaining works will be completed.”
Flat buyers told City Spidey that they have no idea when the issue would be resolved and they would get their flats. They alleged that they are trapped and the builder is not doing clear communication.
“If we go to the builder, he would say IRP has stopped development works. He is not an authority now as NCLT has appointed IRP. And, when we go to appointed IRP (Rajesh Parakh), he says, the builder is not cooperating by providing documents required for audit account,” said Chandan Choudhari, another flat buyer.