Those home buyers had filed a case under the revamped bankruptcy laws about four years ago, citing fraud by the promoters, AMR Infrastructure, and sought possession of their properties.
The process drew resolution plans from two builders and one of the plans was approved by the committee of creditors in May 2019. Since then, at least twice the orders were reserved on approving the plan, but could not be pronounced as the relevant judges left office at the company law tribunals.
The National Company Law Tribunal Appellate admitted the insolvency petition in May 2018 when aggrieved buyers alleged fraud and demanded possession.
“AMR Infrastructure was supposed to deliver the project in 2012,” said a source involved in the matter.
Delhi-based Vikram Bajaj was appointed as the resolution professional.
“The project land was purchased in group company RC Infosystem P Ltd., whereas the bookings for real estate units were undertaken in AMR that offered an assured return to real estate investors,” said Vikram Bajaj.
“The case is peculiar as it has claims of nearly 2,000 homebuyers and no bank or financial institution is involved,” he said.
The resolution plan of Rajasthan-based businessmen Surender Kumar Singhal, Rajat Singhal and Raman Aggarwal, known as the promoters of Krish Group, was approved by the Committee of Creditors in May, 2019.
Justice MM Kumar had reserved his order on approval of the resolution plan. However, he demitted office in January 2020, without passing the order on the application. The case was again opened for rehearing. Resolution plan / objections were re-heard at length by Justice BSV Prakash Kumar.
In between, the Appellate tribunal directed the principal bench to pass orders within two weeks. Consequently, the order was again reserved on March 23 earlier this year. But Justice Prakash Kumar demitted office on June 1 after reserving the order.
The RP filed an appeal seeking early adjudication of the plan approval application with NCLAT, directing the NCLT principal bench to give priority to the case.
“The slow judicial process has dented our hopes in a big way,” said Col. Harish Chopra, who is the president of AMR Association. “Twice our resolution plans were approved in NCLT but orders were not given. Many of our senior citizen members have lost their lives in the waiting process and others have lost faith. The promoters are getting a chance time and again to file new objections.”
The AMR case was admitted on the application of a home buyer. The obligation was considered financial debt by the Appellate Tribunal as TDS was being deducted on assured returns paid to homebuyers.