Tag: Insolvency and Bankruptcy Code

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…

IndustryLatest Stories

Official: Self-Regulation Key for Insolvency Pros and Valuers

NEW DELHI: Corporate Affairs Secretary Deepti Gaur Mukerjee emphasized the need for insolvency professionals and valuers to establish a robust self-regulation mechanism, underscoring the significance of insolvency law during her address at the ninth annual day of the Insolvency and Bankruptcy Board of India (IBBI). Mukerjee noted that there is still a considerable journey ahead regarding the Insolvency and Bankruptcy Code (IBC), as public expectations are quite high. The IBC, introduced in 2016, aims for a market-driven and timely resolution of distressed assets. Currently, over 4,500 insolvency professionals and 6,000 valuers are registered under this Code. While she asserted that…

Latest StoriesRegulatory

SC: Speculative Realty Investors Jeopardize Genuine Buyers

NEW DELHI: The Supreme Court has emphasized the misuse of insolvency proceedings in the real estate sector, driven by speculative investors who negatively impact genuine homebuyers. The court described these investors as a “slow poison” to the residential real estate industry, motivated more by profit than by acquiring property. A bench comprising Justices JB Pardiwala and R Mahadevan expressed concern that “trigger-happy” investors often seek quick exits from projects, undermining the interests of legitimate purchasers. It stated that such entities should not exploit the Insolvency and Bankruptcy Code (IBC) or enable dishonest developers to take advantage of existing loopholes. The…

Latest StoriesRegulatory

SC Urges IBC Reform, Seeks Revival Fund for Real Estate

The Supreme Court, on Friday, called for significant reforms in the Insolvency and Bankruptcy Code to regain trust in the regulatory framework. The Court also urged the government to create a revival fund to finance distressed real estate projects that are undergoing insolvency proceedings. The bench, composed of Justice J.B. Pardiwala and Justice R. Mahadevan, emphasized that the Right to Housing transcends mere contractual obligations, forming a core aspect of the Right to Life under Article 21 of the Indian Constitution. The government cannot adopt a “mute spectator” stance and must protect the interests of homebuyers and the economy. Insanity…

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Valor Estate Might Seek NCLT Review of Lavasa Offer

MUMBAI: Valor Estate is poised to submit a petition to the Mumbai National Company Law Tribunal (NCLT), seeking permission to revise its resolution plan for Lavasa Corp. This move comes after the tribunal recently allowed the Welspun-Ashdan Developers consortium to amend its payment schedule. Valor’s petition follows a week of rapid developments wherein the Welspun-Ashdan consortium emerged as the frontrunner for the takeover due to its modified payment timeline. The committee of creditors voted on three resolution plans, including one from the Yogayatan Group, on Wednesday. During a hearing regarding another application submitted by Anuj Goyal, Valor’s legal team raised…

CommercialLatest Stories

Jet Airways to Transfer Mumbai Office Lease for ₹370 Crore

NEW DELHI | MUMBAI: Jet Airways, which is in the process of liquidation, announced on Wednesday that it has signed an agreement to transfer its office lease in Mumbai for over Rs 370 crore. The lease transfer is pending approval from the Mumbai Metropolitan Region Development Authority (MMRDA) and will be executed in accordance with the Insolvency and Bankruptcy Code (IBC) and Liquidation Regulations, as stated in a regulatory filing. After 25 years of service, the once-renowned Jet Airways halted its operations in April 2019 due to financial challenges, leading lenders to initiate resolution processes under the IBC. During the…

Latest StoriesRegulatory

Adani Group’s Bid for Troubled Jaiprakash Associates Approved

NEW DELHI: The Competition Commission of India (CCI) has in principle approved Adani Group’s acquisition of the financially troubled Jaiprakash Associates, contingent on a successful bid in the ongoing insolvency proceedings. The proposed transaction involves Adani Enterprises Ltd (AEL) and Adani Infrastructure and Developers Pvt Ltd (AIDPL) seeking to acquire up to 100% of Jaiprakash Associates Ltd (JAL), as outlined in a statement from the regulator on Tuesday. The CCI noted that an approval is essential for the concerned entity to submit a resolution plan following a recent Supreme Court ruling regarding the Insolvency and Bankruptcy Code (IBC). The approval…

CommercialLatest Stories

Brookfield buys Jet Airways’ Mumbai office via insolvency

Sure! Here’s a revised version of the content: — Representative image created by AI In a significant update regarding Jet Airways’ insolvency proceedings, Brookfield Asset Management, a major global investment firm, has acquired an additional office floor within the Godrej BKC commercial tower in Mumbai’s Bandra-Kurla Complex for ₹370.25 crore, according to sources familiar with the matter. The transaction was executed under the Insolvency and Bankruptcy Code (IBC) and supervised by the National Company Law Tribunal (NCLT). Initially, Bank of Baroda was the highest bidder, but Brookfield utilized its right of first refusal to match the bid and secure the…

IndustryLatest Stories

CCI approves Dalmia Bharat’s bid for Jaiprakash Associates

Representative image created by AI NEW DELHI: The Competition Commission of India (CCI) has granted approval for Dalmia Bharat’s acquisition of Jaiprakash Associates Ltd (JAL), which is undergoing the insolvency resolution process. As stipulated by the Insolvency and Bankruptcy Code (IBC), approval from the competition authority is essential for submitting a resolution plan to participate in the bidding process. Other interested candidates in acquiring the financially troubled JAL, which spans various sectors including cement, real estate, hospitality, and fertilizer, include Adani Enterprises, Vedanta Group, Jindal Power, and PNC Infratech, all of whom have sought CCI approval for their respective plans.…