Raheja Developers Faces Insolvency Proceedings: Key Takeaways from NCLT Delhi’s Order
- rit arora
- Oct 28
- 3 min read
By Lex Horizon
Background
The National Company Law Tribunal (NCLT), Delhi, has admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Raheja Developers Limited, a prominent real estate developer.
The application was filed by 130 homebuyers (Financial Creditors) of the project “Raheja Krishan Housing Scheme”, alleging default by the Corporate Debtor to the tune of INR 38.89 crore (comprising a principal amount of INR 17.77 crore and interest). The project, located in Sector-14, Sohna, Gurugram (Haryana), spans 10 acres and comprises several towers with approximately 1,660 units. As per the Builder-Buyer Agreements, possession was due in 2019; however, the developer failed to hand over the units, prompting more than 100 homebuyers to jointly approach the NCLT under Section 7, satisfying the statutory threshold requirement.
Tribunal’s Findings
(a) Maintainability and Threshold Compliance
The Tribunal observed that the application was filed by 130 allottees. Even as per the developer’s claim of 1,375 allotments, the applicants meet the 10% threshold prescribed under Section 7(1) proviso of the IBC. Accordingly, the petition was held to be maintainable.
The NCLT reaffirmed that homebuyers qualify as financial creditors and may seek initiation of CIRP where the developer defaults in handing over possession, by claiming refund of the principal amount along with interest or delay penalties.
(b) Limitation
The Tribunal held that the financial debt was not barred by limitation. Since the project fell under the Affordable Housing Policy, 2013, the developer was obliged to deliver possession within 48 months from either the environmental clearance (09.03.2015) or building plan sanction (10.06.2015). Thus, possession was due by 10.06.2019, and the cause of action arose thereafter. Accordingly, the claim was held to be within limitation, and the default was established.
(c) Legal Precedent
Relying on the Supreme Court’s ruling in Innoventive Industries Ltd. v. ICICI Bank and Anr. [(2018) 1 SCC 407], the Tribunal observed that the application was complete in all respects, and the default was evident. Consequently, the insolvency proceedings were admitted.
Additional Observations and Directions
Related Proceedings: The Tribunal noted that the CIRP proceedings for the project “Raheja Shilas (Low Rise)” had already been admitted earlier in Vipul Jain & Ors. v. Raheja Developers Limited [(IB) No. 239(PB)/2023, Order dated 19.11.2024]. The present application, therefore, pertains to all other projects except Raheja Shilas (Low Rise).
Appointment of IRP:Mr. Brijesh Singh Bhadauriya (IBBI Registration No. IBBI/IPA-002/N01045/2020-2021/13385) was appointed as the Interim Resolution Professional (IRP).Email: bsb@bsbandassociates.in
Moratorium:A moratorium under Section 14 of the IBC was declared, restricting all suits, recovery, and enforcement actions against Raheja Developers Limited during the pendency of CIRP.
The Interim Resolution Professional, has already made the Public Announcement in respect of the proceedings, following the admission of the application, under Regulation 6 of the CIRP Regulations, 2016. The announcement formally initiates the Corporate Insolvency Resolution Process (CIRP) of Raheja Developers Limited and calls upon all creditors — including homebuyers, financial institutions, and operational creditors — to submit their claims within the stipulated period.
What Homebuyers Should Do
Submit Claims Promptly: Homebuyers of projects (other than “Raheja Shilas (Low Rise)”) should submit their claims in Form CA to the IRP via email or the address provided in the public announcement. Homebuyers, being the financial creditors can only submit their forms electronically.
Include Supporting Documents: Attach the following:
Builder-Buyer Agreement / Allotment Letter
Payment Proofs / Receipts
Any correspondence evidencing delay or default
Stay Updated: The IRP will verify and collate all claims and thereafter constitute the Committee of Creditors (CoC). All subsequent updates, including notices for the first CoC meeting and resolution plan invitations, will be communicated by the IRP.
Important to note
The declaration of moratorium under Section 14 of the IBC continues to remain in force — prohibiting any recovery, possession, or enforcement actions against Raheja Developers Limited during the CIRP period.
Find the orders and public announcement here:
