Lavasa investors’ money stuck till NCLT final order

Lavasa investors’ money stuck till NCLT final order
06/09/2018 , by , in News/Views

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to rule on Lavasa investors’ cases only after the case in front of the National Company Law Tribunal (NCLT) is resolved.

the NCLT had admitted a plea filed by creditors, who had initiated the corporate insolvency resolution process against Lavasa Corporation Limited under the Insolvency and Bankruptcy Code 2016 (IBC).

“We issued an order on August 29 in favour of the investors directing Lavasa to return the principle amount with 10.65% interest within 30 days. This order will have to be executed. However, the remaining orders will have to wait till we get an order from NCLT,” a MahaRERA official said.

This means 15 investors who had filed cases against Lavasa with MahaRERA are stuck till a final decision is reached. They are confused as to how if the company will execute the earlier orders, if it is declared insolvent. “There is no way that the earlier orders will be executed as the company will delay matters,” one investor said.

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