Case Law Details
Real Estate Regulatory Authority Vs D.B. Corp Limited (NCLAT Delhi)
NCLAT Delhi held that RERA (Real Estate Regulatory Authority) being an aggrieved person under section 61 of I&B Code 2016 has a locus to file an Appeal against order initiating Corporate Insolvency Resolution Process (CIRP).
Facts- Vide the present appeals, the appellant challenges order by which the Adjudicating Authority (National Company Law Tribunal), Indore Bench, Court No.1 admitted Section 9 application filed by M/s D. B. Corp. Ltd., the Operational Creditor. Notably, appellant is Regulatory Authority constituted u/s. 20 of the Real Estate (Regulation and Development) Act, 2016.
M/s AG8 Ventures Ltd. is a registered company developing various real estate projects in the State of Madhya Pradesh. M/s AG8 Ventures Ltd. (Corporate Debtor) had obtained registration of 11 real estate projects from the Real Estate Regulation Authority, Madhya Pradesh (RERA). The Corporate Debtor under different real estate projects allotted various residential/commercial units to several allottees from the year 2010 onwards.
The RERA received various complaints from allottees of the Corporate Debtor, which complaints were entertained and various orders related to different projects were passed in the year 2020-21 directing the Corporate Debtor to refund the amount along with compensation to various complainants. RERA also passed an order on 18.08.2021 u/s. 35 of the RERA Act, 2016 to investigate about the diversion of funds from the designated account. Notice was also issued to the Promoter as to why the registration of the real estate project may not be cancelled. An order dated 08.01.2022 was passed by the RERA observing that the Corporate Debtor has diverted funds from the project and failed to maintain the same in a designated separate account. The registration of the real estate project ‘Aakriti Aquacity’ was also revoked.
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