18 February 2019: A group of home buyers of Navi Mumbai-based Monarch Developers have filed an intervention application against the builder at the National Company Law Tribunal, which is hearing an insolvency petition against the builder.
As many as 1,500 under-construction flats have been sold by the developers spread across Navi Mumbai. These people, who see little hope of getting possession of their flats, have filed an application at the court seeking participation in the case.
“We are representing certain home buyers and have filed an intervention application in NCLT for intervening in the company petition filed by Capri Global under the Insolvency and Bankruptcy Code, to protect their interests in this matter,” said Vinay Chauhan, partner, Corporate Law Chambers India, who is representing the group of home buyers. He declined to divulge further details.
“We are hopeful that as envisaged under the said code, the interests of homebuyers will be protected,” he said.
Home buyers have prayed that the court direct the interim resolution professional (IRP) to ensure that the interest of the home buyers are not compromised, if the court admits the case. ET has viewed a copy of the application.
They have sought a court order directing financial creditors to amend/rectify the application, in case there is a disclosure in the application, stating that the flats belonging to the applicants are part of security obtained by it from the corporate debtor.
Flat buyers have also prayed the court to instruct the IRP to “judiciously and scrupulously” scrutinise all the claims made by the financial creditor.
“…so that the home buyers get the possession of their flats at the earliest.”
Capri Global filed an insolvency petition last year, which is pending for admission as the next court hearing will take place in March.
“We confirm that we have filed an insolvency application in NCLT against Monarch Brookefields LLP, an entity of the Monarch Developers group,” said a spokesperson for Capri Global.
The claim amount at the time of filing the application was Rs. 97.68 crore.
Many other home buyers have reached out to Chauhan after the application was filed.
The builders have been running about three projects, where retail home buyers have booked flats.