Snehanjali S. B. Developers admitted under insolvency
₹81 crore in the project which was duly acknowledged by the developer. The timelines were extended from 2019 to 2023; however, despite indefinite extensions the project remains to be completed, they added. July 2023 was set as the date of default in the application.
Niyati Merchant, associate partner at MDP and Partners, representing the homebuyers submitted that the home buyers invested their lifetime savings, obtained loans and made financial arrangements, relying on the promises made by the corporate debtor for modern amenities and facilities as well as timely completion of the project. Since the project was incomplete, Merchant added that it led to causing distress to the home-buyers who received neither possession nor refunds till date. On the other hand, counsel for the developer argued that applicants had failed to prove that there is a default committed by the Corporate Debtor under Section 3(12) of the Code.
The applicants had failed to follow the procedure established under the statute and have filed the application without furnishing a record of the default, counsel added. Moreover, counsel argued that Snehanjali is a solvent company. It is pointed out that the corporate debtor had repaid the loan of Kotak Mahindra Investments Limited of around ₹68 crores and obtained its “No Dues Certificate" dated August 2023 thereby confirming that it does not have any charge over the ‘O2’ Project.
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