MC Explains: Why was it necessary to issue cancellation notices to around 3,000 Amrapali buyers?

The Supreme Court-appointed court receiver, tasked with monitoring the completion of real estate company Amrapali’s stalled projects in Noida and Greater Noida, Uttar Pradesh, has issued notices to almost 3,000 prospective buyers who have neither registered their details on the receiver’s website nor paid their outstanding dues, informing them of their units being cancelled. This was needed as without there being clarity over unclaimed inventory, the flats could not be sold to raise funds for completion of unfinished units.

Against this backdrop, Dinesh Pednekar, Partner at Economic Laws Practice (ELP) has been quoted by moneycontrol.com in their article titled ‘MC Explains: Why was it necessary to issue cancellation notices to around 3,000 Amrapali buyers?’. Dinesh throws light on how the unclaimed units are treated under IBC. He says, “On June 14, 2022, the IBBI (Insolvency and Bankruptcy Board of India) has invited suggestions from the public for effective and expeditious resolution of real estate projects. The IBBI has sought public responses on various vexing issues such as addressing delayed claims by homebuyers, the ability of homebuyers to complete the project themselves, dealing with unsold inventory, etc. It is to be noted that this is only an indicative list and, therefore, open for further suggestions.”

Read the comment and detailed article here