NCLAT gives relief to Ansal API homebuyers

LUCKNOW The National Company Law Appellate Tribunal (NCLAT) on Friday gave relief to homebuyers in Ansal API case through its interim order restraining the Interim Resolution Professional (IRP) from inviting expressions of interest as Form G hasn’t been issued.

The tribunal also allowed the intervention applications of the Lucknow Development Authority (LDA) and other development authorities, UP RERA, Housing Board and homebuyers. It directed them to file affidavit in support of their case within two weeks. The tribunal allowed the IRP to verify claims of creditors in accordance with the CIRP Regulations, 2016.

The IRP was appointed to evaluate Ansal API Group’s projects in Lucknow, Noida and other cities. In Lucknow, buyers of the group’s major project, Sushant Golf City, started protesting after the group was declared bankrupt.

Form G is a key document used to formally announce the commencement of the resolution process and to invite potential resolution applicants to submit their plans. Without the form being issued, the IRP cannot officially invite expressions of interest from potential resolution applicants.

This means that potential investors or companies looking to submit resolution plans for the Ansal API cannot do so until Form G is officially issued by the IRP. The tribunal fixed May 20 as the next date of hearing.

Ansal API had filed a 48-page petition in the NCLT, declaring itself bankrupt, on February 25 this year.

NCLT declared Ansal Group insolvent and appointed an Interim Resolution Professional (IRP).

Investors, who had been waiting for their plots for 12 to 15 years, were taken aback by the decision. Since then, protests have erupted, with affected homebuyers opposing the decision.

The LDA and a group of 33 investors of Ansal Properties Infrastructure Limited had filed an appeal in the NCLAT against the decision of the NCLT to declare Ansal Properties Infrastructure Limited bankrupt.

BJP MLA from Sarojini Nagar, Rajeshwar Singh, under whose assembly segment comes the Ansal API township, was present in the NCLAT court in New Delhi on April 15 and 17 to argue the case on behalf of homebuyers.

“I will continue my fight for homebuyers on every platform till they get justice,” said Rajeshwar Singh, who is also a lawyer.

The Ansal API high-tech township was approved on May 21, 2005, on 1765 acres at Sultanpur road and its DPR was approved on May 22, 2006. Thereafter, the project was expanded to 3530 acres on June 3, 2009 and the new DPR was approved on May 18, 2010.

The final project spanning 6465 acres was approved on December 13, 2013 and its DPR was approved by the LDA on May 23, 2015. Under the new township policy of the state government, the project was reduced to 4689.79 acres on December 16, 2021 and its DPR was approved on September 27, 2022.

The DPR was handed over to the developer on April 13, 2023 on condition that it will carry out development work in the township. The developer failed to carry out development work. In the township, 411 acres was also mortgaged with the LDA.

According to the FIR, the developer sold the land mortgaged with the LDA illegally and did not carry out any development work.