Tag: Insolvency and Bankruptcy Code

Latest StoriesRegulatory

SC: Homebuyers, RWAs can’t join developers’ insolvency process

NEW DELHI: The Supreme Court ruled on Thursday that homebuyers’ societies, or Resident Welfare Associations (RWAs), generally established for the maintenance and management of common facilities in housing projects, do not possess the right to intervene in the insolvency proceedings of the developer company. A bench comprising Justices JB Pardiwala and R Mahadevan upheld the insolvency proceedings against Takshashila Heights India Private Ltd under the Insolvency and Bankruptcy Code of 2016. It specified that if creditors aim to utilize the provisions of the code, they must genuinely seek to revive the corporate debtor. The court stated, “If revival is not…

IndustryLatest Stories

Land Shortages Fuel Strategic Acquisitions through Bankruptcy

As land availability tightens and competition grows in India’s major cities, strategic buyers are increasingly using the corporate insolvency resolution process under the Insolvency and Bankruptcy Code to acquire urban real estate. This framework is becoming crucial in facilitating ownership changes and land consolidation in areas with limited supply, a trend reflected in various recent rulings by bankruptcy tribunals nationwide. Data from the Insolvency and Bankruptcy Board of India indicates that by the end of September, 8,659 companies had entered insolvency proceedings, with around 1,905 being real estate companies. Of these, approximately 1,472 have received resolution plans from prospective buyers,…

Latest StoriesRegulatory

Insolvency Cases Surge, Straining NCLT amid Infra Issues

NEW DELHI: The Insolvency and Bankruptcy Code (IBC) framework in 2025 faced increasing stress on timelines and capacity, with resolution processes often extending beyond statutory deadlines. This scenario persists despite the National Company Law Tribunal’s (NCLT) efforts to manage its limited resources. Senior advocates and legal experts have raised alarms over systemic delays, indicating that nearly 10,000 cases remain stuck at the admission stage, with over Rs 10 lakh crore in distressed assets at stake. Additionally, nearly 24 out of 30 NCLT courts are operating on half-day schedules. The delays can be attributed to a combination of limited capacity, repeated…

Housing FinanceLatest Stories

Aviom India Housing Finance Promoter Presents Full Settlement Plan

Representative AI image KOLKATA | MUMBAI: The promoter of Aviom India Housing Finance is currently in bankruptcy proceedings and has submitted a revised repayment proposal. This development follows Unity Small Finance Bank winning the bidding for Axiom in a challenge auction. Promoter Kajal Ilmi indicates that the offer includes an upfront payment of ₹554 crore, with the remainder (60% of the owed amount) to be settled over the next 28 months. This upfront payment consists of ₹360 crore in cash available on the company’s books. Aviom India’s administrator, Ram Kumar, has not responded to emailed inquiries and has acknowledged 60…

Latest StoriesRegulatory

SC Ruling on Supertech Supernova Offers Hope to Buyers

NEW DELHI: The Supreme Court’s recent order to appoint a new developer for the Supertech Supernova project in Noida, which is currently undergoing insolvency proceedings, has sparked renewed hope for countless homebuyers awaiting progress on stalled housing projects. As the construction of several projects has come to a halt during the insolvency process, the Supreme Court has stepped in to protect homebuyers’ interests by appointing a three-member committee to select another builder for the Supernova project, putting all entities under the Insolvency and Bankruptcy Code aside. The committee is tasked with appointing a new developer by evaluating proposals based on…

Housing FinanceLatest Stories

Unity Small Finance Bank Wins Auction for Aviom India Housing

MUMBAI: Unity Small Finance Bank has successfully bid for the bankrupt Aviom India Housing Finance, offering an upfront payment of ₹977.5 crore, according to sources familiar with the matter. Initially, six companies expressed interest in acquiring Aviom India Housing Finance under the National Company Law Tribunal (NCLT) process, with three ultimately participating in the auction held last week. Areion, a fund backed by Omkara Asset Reconstruction Company, and Authum Investment and Infrastructure were the other two bidders in the auction conducted by Ram Kumar, the RBI-appointed administrator and former general manager of Punjab National Bank. “The bidding involved 13 rounds,…

Latest StoriesRegulatory

NCLAT: Creditors Can Appoint Liquidator, Not NCLT

NEW DELHI: The authority to appoint a liquidator for a company in debt undergoing insolvency procedures lies solely with the Committee of Creditors (CoC), not the National Company Law Tribunal (NCLT), in instances where a Resolution Professional has not provided written consent, as per the National Company Law Appellate Tribunal (NCLAT). In a ruling concerning two similar cases where the NCLT had appointed liquidators for two struggling companies, the NCLAT overturned those decisions, emphasizing that “only the CoC has the authority to select a candidate to replace the RP.” The NCLAT clarified that while the NCLT serves as the designated…

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Panel urges rapid courts for swift insolvency resolutions

The parliamentary standing committee on finance has urged the government to establish special fast-track courts temporarily while also increasing the capacity of the National Company Law Tribunal (NCLT) to address extensive case backlogs and facilitate the rescue of insolvent companies. Led by senior BJP leader Bhartruhari Mahtab, the panel has proposed an advance ruling mechanism akin to that used in the goods and services tax framework. This would provide greater certainty and help prevent disputes after litigation under the Insolvency and Bankruptcy Code (IBC). The committee presented a report titled “Review of Working of Insolvency and Bankruptcy Code and Emerging…

Latest StoriesRegulatory

ED Alleges Experion Developers Misused IBC in Land Deal

NEW DELHI: The Enforcement Directorate (ED) has accused the real estate developer Experion Developers of improperly utilizing the Insolvency and Bankruptcy Code provisions to acquire 9.3 acres of land in Gurugram’s Sector 62. As part of a Prevention of Money Laundering Act (PMLA) investigation involving Religare Finvest, the ED attached assets owned by the corporate debtor, Dignity Buildcon, which was subsequently purchased by Experion. The ED has filed a petition with the National Company Law Tribunal (NCLT) requesting a review of its May 2023 decision that permitted Experion to take over Dignity Buildcon through the insolvency procedure. The ED highlighted…

Latest StoriesRegulatory

ED Seizes ₹50 Lakh Cash Over IBC Misuse in Land Sale Case

NEW DELHI: On Friday, the Enforcement Directorate revealed an incident involving the misuse of the Insolvency and Bankruptcy Code (IBC) in the land sale of an insolvent real estate firm. During recent raids, Rs 50 lakh in cash was confiscated from a lawyer at the NCLT and another individual. The federal agency stated it conducted searches on Thursday in Delhi and Gurugram as part of an investigation into Universal Build Well Pvt. Ltd. and its promoters, concerning unfinished real estate projects and alleged fraud against homebuyers and investors. The company was in a corporate insolvency resolution process. The National Company…