Bhopal (Madhya Pradesh): The National Company Law Appellate Tribunal (NCLAT), principal bench, New Delhi, has allowed appeal against order of the Real Estate Regulatory Authority (RERA) that directed AG8 Venture limited (corporate debtor) to give refunds to allottees with compensation.
The RERA had also passed an order to investigate the diversion of funds from the designated account. A notice was issued to the promoter as to why the registration of the real estate project may not be cancelled. The RERA also observed that the corporate debtor failed to maintain the same in a designated separate account. The RERA order dated January 8, 2022, also revoked the registration of the real estate project ‘Aakriti Aquacity’.
The order passed by the RERA was challenged by the corporate debtor before the RERA Appellate Authority, which directed the corporate debtor to make a deposit. The order was unsuccessfully challenged before the Madhya Pradesh High Court.
Orders were also passed on March 23, 2022 by the RERA revoking the registration of real estate project ‘Aakriti Business Arcade’ and directing for appointment of an agency for completion of the said project under section 8 of the RERA Act, 2016.
A demand notice was issued by DB Corp Ltd to the corporate debtor claiming payment of an operational debt of Rs.10,77,17,000 with interest relying on various barter agreements entered between the operational creditor and the corporate debtor.
Meanwhile, Aquacity Consumer and Societies Welfare Society, claiming to be a society of homebuyers, filed two consumer complaints for its members/homebuyers.
The members have booked their respective units in the year 2014-17. It was submitted that the corporate debtor has siphoned off the money collected from the buyers of the project.
The National Consumer Disputes Redressal Commission (NCDRC) allowed both the consumer complaints and directed the corporate debtor to refund the amount along with interest of 9% pa from the date of possession.
Civil appeals were also filed before the Supreme Court by the Appellant Association for modification of the order of NCDRC to the extent that the interest should be from the date of payment and not from the date of possession.
The corporate debtor filed an affidavit in reply where it expressed its inability to make the payment to the operational creditor. The corporate debtor also expressed its willingness to pay an admitted principal amount of Rs.5,25,89,000.