NCLAT directs IRP to supervise ATS project

economictimes.indiatimes.com:

NCLAT) has directed an interim resolution professional (IRP) to oversee construction of Knightsbridge, a super luxury residential project of property developer ATS Group in Noida.

The appellate tribunal's decision follows ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, taking ATS to the National Company Law Tribunal (NCLT) citing a default of ₹285 crore.

NCLAT instructed the IRP to limit its actions solely to the construction process and directed all parties involved to file a reply within three weeks.

This marks the second instance of ASK Property Fund pursuing legal proceedings against the real estate firm at the NCLT, after admission of another ATS project, located in Sector 150, Noida, in the insolvency court in November 2023.

«The RERA accounts that are earmarked for the construction of the project, under the instructions of the IRP and other signatories to the fund, may be used for construction. Financial creditors are also to extend cooperation for the release of funds for the purpose of the construction,» NCLAT said in its order.

NCLT had earlier appointed an IRP for the project, prompting ATS to reach the NCLAT. During the NCLAT hearing, ATS and JM Financial challenged the Section 7 order issued by the NCLT.