Limited Insolvency Proceedings for Raheja Shilas Project

In a partial relief to Raheja Developers, the NCLAT confined insolvency proceedings to its 'Raheja Shilas' project. The tribunal, however, asked for updates on other incomplete projects. Initially triggered by flat owners, the insolvency proceedings are being challenged by Raheja's chairman, Navin Raheja.

In a significant development for Raheja Developers, the National Company Law Appellate Tribunal (NCLAT) has limited insolvency proceedings to just one of its projects, 'Raheja Shilas'. This decision offers partial relief to the realty firm amidst ongoing challenges.

The three-member NCLAT bench, led by Chairperson Justice Ashok Bhushan, directed Raheja Developers to submit detailed reports on its other incomplete projects and ongoing ventures. This step is essential for passing appropriate orders in the future.

The tribunal's order followed a petition from Navin Raheja, Chairman & Managing Director of the suspended board, challenging an earlier decision by the National Company Law Tribunal (NCLT) to initiate insolvency proceedings for the firm. Affected flat owners in Gurugram's Sector 109 had initially filed the plea leading to insolvency actions.

(With inputs from agencies.)