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SC upholds insolvency proceedings against real estate firms for Greater Noida project
The Supreme Court has upheld insolvency proceedings against realty firms for Greater Noida project, reinforcing the rights of buyers and commercial allottees
The Supreme Court on Feb 2 upheld the initiation of corporate insolvency resolution proceedings against real estate firms Bhasin Infotech and Infrastructure Private Limited and Grand Venezia Commercial Towers Private Limited, reinforcing the rights of homebuyers and commercial allottees.
A bench comprising Justices Sanjay Kumar and K Vinod Chandran dismissed the appeals filed by the erstwhile directors of the two companies, including Satinder Singh Bhasin.
The bench held that the developers failed to deliver functional units and misled the court on the project's completion.
It did not allow the contention of the appellants that the construction was completed in all respects and possession was delivered to some of the petitioning allottees, saying this was "found to be without merit and factual foundation".
"Notwithstanding the letters and documents sought to be relied upon in that regard, the ground reality is otherwise. Neither has the construction been completed nor could possession of units be delivered to the allottees without fulfilling all necessary formalities in that regard after completion of the building in all respects," Justice Kumar, who authored the judgement, said.
The verdict held that the company petition instituted against both the corporate debtors by the allottees of 103 units was maintainable on all counts.
It said the allottees established their financial debt and also the default, inasmuch as the units for which they had paid valuable consideration were not made ready and delivered to them to date.
"We, accordingly, find no error having been committed either by the NCLT in admitting the company petition or by the NCLAT in confirming the same in appeal. Hence, civil appeal Nos. 13779 and 13812 of 2025 are bereft of merit and deserve to be dismissed," it said.
The case originated from a 2021 petition filed by 141 allottees of the Grand Venezia Commercial Tower in Greater Noida.
The allottees alleged that although possession was promised by May 2013, the units were unfit for occupation, lacked a completion certificate from the Uttar Pradesh State Industrial Development Authority (UPSIDA), and that the developers had stopped paying promised "assured returns" in 2014.
The National Company Law Tribunal (NCLT) admitted the insolvency plea in December 2023, a decision subsequently upheld by the National Company Law Appellate Tribunal (NCLAT).
