Mumbai, September 27: Lokhandwala Infrastructure, a Mumbai-based real estate developer has gone bankrupt with the National Company Law Tribunal (NCLT) ordering that insolvency proceedings should be started against the firm. The NCLT has now begun insolvency resolution proceedings against Lokhandwala builder under Section 7 of the Insolvency and Bankruptcy Code (IBC). The dedicated bankruptcy court has set a deadline for the submission of claims and has asked financial creditors, homebuyers and employees to submit their claims with proof by October 3.
According to a report by Mumbai Mirror, a notice issued by the NCLT-appointed Insolvency Resolution Professional stated that the Mumbai Bench of NCLT ordered the initiation of the process on September 19 and hopes to conclude it by March 17, 2020. According to the Maharashtra Real Estate Regulatory Authority website, registered in the name of Lokhandwala Kataria Construction Private Limited, the project, with a Mahalaxmi race course view, is to be developed as a 78-storey luxury project offering 3 BHK, 4BHK duplex apartments with a penthouse. Videocon Files For Bankruptcy, Invites Bidders Under Insolvency Resolution Process.
The Mumbai Mirror report further informs that Lokhandwala infra is the second big developer to go insolvent under the provisions of the Insolvency and Bankruptcy Code (IBC) after Housing Development and Infrastructure Ltd (HDIL). On August 26, the NCLT had initiated insolvency proceedings against HDIL on August 26 after it failed to repay dues to the tune of Rs 522 crore to Bank of India.
The Mumbai bench of NCLT restricted Lokhandwala infrastructure from creating any third-party rights or disposing of any assets. Earlier this year, Shapoorji Pallonji Real Estate (SPREL) had announced a partnership with the Lokhandwala group to jointly develop the marquee project, Minerva, in Mahalaxmi.
On Thursday, another firm - Jaypee Group, which is facing insolvency claimed that the company is in good health and has more assets than liabilities. The chairman of the firm, Manoj Gaur said said realty arm Jaypee Infratech is undergoing insolvency but "is in good health" and has posted a growth in revenue in 2018-19. Gaur expressed hope that it will get the project to deliver nearly 20,000 flats, which have got delayed by several years leaving thousands of homebuyers in lurch.