Another Realtor In Delhi May Be Liquidated
New Delhi: Another developer in Delhi NCR may be wound up. The process of liquidation of Praveer Constructions of Delhi has been allowed by the National Company Law Tribunal (NCLT). The process will be carried out under section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, according to a news report in ETRealty.com.
The legal action comes after one of the creditors of the Praveer Constructions had filed a plea under Section 7 of the IBC in October last year. The court has appointed Alok Kaushik as the Insolvency Resolution Professional (IRP) in the case.
The IRP had first made an announcement and also invited Expressions Of Interest (EOIs) in February 2019 but he did not get any response. Again the IRP invited EOIs in May this year and three EOIs were received by him.
A Committee of Creditors (CoC) was formed of individual investors who were the allottees of commercial space in a project of Praveer Constructions. But there was legal resolution plan. Hence the CoC has decided to liquidate the realty firm by voting share of 79.32 percent.
The liquidator will soon look into financial affairs of the firm as per the provisions of Section 35 (1) of IBC.
Kaushik has been asked to issue public announcement saying that the firm is in liquidation.