The fate of over 1,600 homebuyers of RG Luxury Homes in Noida Extension will soon be decided as the National Company Law Tribunal (NCLT) on Monday initiated the corporate insolvency resolution process against the developer under Section 7 of the Insolvency Bankruptcy and Code (IBC) - 2016.
The decision was taken after hearing a plea of several homebuyers. Homebuyers alleged that they have already paid up to 90 per cent of their flat's price.
However, there is uncertainty whether they would get their homes or not. The tribunal has appointed Gaurav Katiyar as the interim resolution professional (IRP) to resolve the issue.
Aditya Parolia, one of the advocates representing homebuyers in the case said, “Earlier there were only a couple of homebuyers who had appealed before the tribunal. But their numbers increased eventually. They all have raised the same concern and have pleaded for justice. Tribunal accepted homebuyers’ plea and has initiated insolvency proceeding.”
Two homebuyers said that they had booked two apartments in the project RG Luxury Homes in Sector 16-B in Greater Noida in 2012. They have already paid Rs 86.64 lakh of the total worth of their flats, and they were scheduled to get the possession by 2016. But the project is yet to get completed.
Homebuyers further said that the builder had assured monthly returns and in case of delay, it promised to pay compensation at Rs 10 per sqft per month of the built up area of the apartment.
According to Parolia, the NCLT has also noted that Rajesh Project has failed to comply with settlement terms in an insolvency case which had taken place in 2018.