Initiate insolvency proceedings against GBP group, say investors

Tribune News Service

Ramkrishan Upadhyay

Chandigarh, May 26

Financial creditors have filed an application for initiation of corporate insolvency resolution process against Gupta Builders and Promoters (GBP) Private Limited, with the Chandigarh Bench of the National Company Law Tribunal (NCLT).

The application has been moved with the names of Isht Preet Singh Sethi and other financial creditors through counsel Manish Jain and Divya Sharma under Section 7, Insolvency and Bankruptcy Code, 2016, read with rule 4 of the Insolvency and Bankruptcy Rules, 2016.

The application was filed after the developer allegedly failed to complete projects leaving hundreds of investors in the lurch. The amount of financial debt with regard to 500 financial creditors, who have moved the NCLT in the case, runs into crores.

The applicant stated that the corporate debtor (GBP group) in 2015-16 and 2016-17 had started advertising for projects situated in Zirakpur, Mohali, New Chandigarh and on the Ambala-Chandigarh Highway.

These were stated to be commercial and residential projects.

The corporate debtor had issued an allotment letter to each financial creditor and promised to construct and deliver possession of flats to home buyers within the stipulated time. But the company failed to offer possession of flats as promised and pay delay charges. This resulted in default in payment of financial debt.

Besides, the application stated that the corporate debtor floated “investment schemes” of three to six years for individual investors hailing from small towns and villages and promised to pay yearly return during the term period along with amount payable at the time of the investment maturity.

The corporate debtor assured financial creditors that on maturity of the particular scheme, they would either be allotted plots or paid good returns on their investments, but the former failed to do so, the application further stated.

500 creditors

The application was filed after the developer allegedly failed to complete projects leaving hundreds of investors in the lurch. The amount of financial debt with regard to 500 financial creditors, who have moved the NCLT in the case, runs into crores.

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