GreNo: Airwil Intellicity buyers to bear expenses for insolvency resolution

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GreNo: Airwil Intellicity buyers to bear expenses for insolvency resolution

The home-buyers have come together to generate money which they have to pay for appointing a Resolution Professional (RP).

GreNo: Airwil Intellicity buyers to bear expenses for insolvency resolution

After waiting for several years to get their flats, Airwil Intellicity buyers are are left with no choice but to bear the expenses of resolution process as the firm developing the project went into insolvency proceedings under IBC -2016. The home-buyers, who have approached the National Company Law Tribunal (NLCT) against the developer, have come together to generate money which they have to pay for appointing a Resolution Professional (RP).

Earlier, on home-buyers' complain, the tribunal directed for insolvency proceedings on project and appointed Mohit Kumar as an Interim Resolution Professional (IRP).

Flat-buyers said that as the developer has no funds, they have to raise Rs 1 crore for resolution process, including monthly fee of IRP. “Builder has no funds to show in its book and at this stage we are left with no choice but to bear the expenses of IRP. Therefor, we have decided to collect money among ourselves so that we don't have to face any hurdle during proceedings and we can get our flat,” said Geeta Mathur, who has bought the flat in Airwil Intellicity, a mixed project which comprises of shops, offices and residential property,

Under IBC-2016, if a firm is declared as insolvent, the law (tribunal) appoints an IRP to resolve the matter within 270 days. However, the center has recently made amendments in IBC Act and instead of 270 days, an IRP has 330 days to resolve the matter.

Mathur said, “The proceedings will cost us around Rs 1 crore for 270 days which will be divided equally among 1900 flat-buyers waiting for their homes. However, when the resolution is completed the amount will be settled and reimbursed in some manner.”

Talking about fund raising campaign, Mathur told that out of 1900 buyers, only 520 buyers agreed to contribute and have filed their claim till last Sunday. “We will invite those who have not filed their claim on September 13 to come on board and claim their stakes. We want the support of all the buyers in resolving this issue,” Mathur added.

The NCLT filed the insolvency case against the builder on June 13.

Airwil Intellicity was served a de-registration notice on March 8 by UP-Rera. The notice by UP-Rera was served after the regulator ordered a forensic audit of the financial data of the company in November last year.

Pradeep Khera, another buyer, said, “Conflict among the buyers have divided them into two groups. One group went to UP-Rera which initiated insolvency resolution, while the other went to NCLT. With the NCLT proceedings already in progress, the buyers have no choice but to go with the proceedings.

Airwil Intellicity is a 25-acre commercial project launched in 2011 and was supposed to be completed 2016-17.