Haryana Real Estate Regulatory Authority (RERA), Panchkula has answered this question in Ritu Rana versus Ireo Fiveriver Pvt Ltd that though the company is undergoing Insolvency proceedings before National Company Law Tribunal (NCLT), it doesn’t bar complainant to approach RERA Authority or any Court.

The Authority said, homebuyers are at par with any other Creditor against promoters before NCLT. Their claim are to be realised from other assets if not sufficient with project cost.

RERA vs. NCLT

The view of RERA Authority Panchkula is that homebuyers will have superior right over financial institutions is yet to be tested by NCLT Tribunal across the country.

Facts
1 NCLT started proceedings in December 2018 against IREO fiveriver Pvt Ltd .
2 Project relates to 250 acre project in Sector 3,4 & 4 A, Pinjore-Kalka Urban complex, Panchkula

The court directed applicants to present the order before NCLT and seek modification in the order keeping their interest intact.

Role of TCP
As laid down in Gurbaksh Singh case, Haryana Town & Country Planning (TCP) department has to complete the project in Ritu Rana’s case as well since the department gave sovereign assurances and approvals for the clearance of project which investors have invested their hard earned money.

The director of TCP, department has been asked to take over the project irrespective of any other proceedings before any court.

The problems for IREO fiveriver project allottee is not coming to an end. The resolution experts in this case is yet to examine the validity of RERA orders during moratorium.

It is highly likely to be settled at this stage whether homebuyers supersede banks or not? Else road to Supreme Court are always open. Who knows?

Stay tuned. Dial 99888-17966 for more info.