This Bengaluru-based Realty Firm Declared Insolvent After Completing Half Of The Project
New Delhi: The current slowdown and financial mismanagement is resulting in insolvencies of just Delhi NCR realty firms but also of companies in Bengaluru, which is considered to be one of the cleanest and end-user driven property market. Now the National Company Law Tribunal (NCLT) has ruled declaring insolvency of Skylark Mansions Private Ltd, a largish realty player in the IT Capital.
The court declared the company insolvent after buyers of ‘Skylark Ithaca’ project filed a petition before the NCLT for declaring the company insolvent.
The insolvency case against this Bengaluru-based realty firm is, however, quite unique.
Skylark Mansions, together with its subsidiary -Ithaca Estates, initiated Skylark Ithaca in 2013. All the approvals were secured from Bangalore Development Authority (BDA) by November 2013.
The project was to be developed in two phases. The first phase of the project was falling Kadugodi police jurisdiction and the second phase was falling in Avalahalli police jurisdiction.
About 700 people bought flats in the project and their total investment was Rs 383 crore. The construction of the project was progressing well and by 2017, when the project was half complete, the work on the site completely stopped. The buyers approached the developer to know the reason why the work had stooped but got no satisfactory answer. They then approached the police and filed FIRs against the builder.
Many buyers also approached RERA authorities but the efforts did not result in any conclusion. So the buyers formed an association by the name of ‘Skylark Ithaca Buyers Welfare Association’ and filed their plaint with the NCLT. The court ruled in favour of the buyers and declared the company insolvent.