Insolvency Proceedings Initiated Against Spaze Towers: NCLT Ruling

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against realty firm Spaze Towers following a plea from flat owners. The company defaulted on delivering possession in the Spaze Arrow project, Gurugram. An interim resolution professional has been appointed, and the board has been suspended.

The National Company Law Tribunal (NCLT) has ordered the start of insolvency proceedings against the real estate firm Spaze Towers. This decision follows a plea from flat owners alleging the company's failure to deliver possession of units in the 'Spaze Arrow' project, located in Gurugram's Sector 78, within the agreed timeline of 42 months.

The NCLT has appointed an interim resolution professional to manage the company's affairs, suspending the existing board in accordance with the Insolvency & Bankruptcy Code. The tribunal dismissed Spaze Towers' argument that dues had been settled with nine petitioners, acknowledging the company's default on its financial obligations.

With outstanding debts exceeding Rs one crore, Spaze Towers faces an insolvency resolution process. This recent case adds to the firm's ongoing legal struggles, as it previously encountered a similar situation in 2021 with another project, 'Spaze Corporate Park'.

(With inputs from agencies.)