In a significant legal development, the National Company Law Appellate Tribunal (NCLAT) has delivered a crucial ruling that mandates the Lucknow Development Authority (LDA) must be heard before any orders are passed in the insolvency proceedings against Ansal Properties and Infrastructure Ltd. This decision offers major relief to the Authority and thousands of aggrieved homebuyers.
A Long-Standing Dispute Over Undelivered Homes
The case stems from alleged violations of the High-Tech Township policy by the Ansal Group and the subsequent non-delivery of residential and commercial units. Since 2009, thousands of homebuyers in Lucknow have been waiting for plots, flats, villas, and commercial spaces they booked with the real estate developer. Following complaints from these buyers, the state government initiated action, leading the LDA to lodge an FIR and approach the appellate tribunal.
LDA's Challenge and the NCLAT's Verdict
The National Company Law Tribunal (NCLT) had earlier admitted the insolvency plea against Ansal Properties, declared the firm bankrupt, and appointed an interim resolution professional. This move raised immediate concerns regarding the interests of both homebuyers and government departments. The LDA challenged this action, arguing that the NCLT proceeded without notifying it or other relevant government bodies, despite pending dues amounting to several thousand crores of rupees.
The NCLAT has now upheld the LDA's contention. The appellate tribunal ruled that no order in the ongoing insolvency process can be issued without first hearing the Authority. Officials stated that this order strongly reinforces the LDA's position in the case.
Irregularities and Massive Financial Claims
During the proceedings, the Lucknow Development Authority also highlighted serious irregularities in land transactions. The Authority flagged issues concerning approximately 411 acres of land that were mortgaged under the township project but were allegedly sold illegally. In light of these violations and the outstanding dues, the LDA has filed financial claims worth roughly Rs 4,500 crore in the insolvency proceedings.
Implications for Homebuyers and Next Steps
This ruling is seen as a vital safeguard for the interests of the homebuyers who have been entangled in this dispute for over a decade. By ensuring the LDA, which represents both regulatory and public interests, has a say in the process, the NCLAT order aims to prevent a resolution that overlooks the claims of thousands of citizens and the government. The matter will now return to the NCLAT for further hearings, where the Authority's claims and the homebuyers' grievances will be central to the proceedings. Officials believe this judicial direction strengthens the case for recovering dues and ensuring justice for all stakeholders.
