NCLT-Delhi asks why insolvency proceedings should not be initiated against DLF’s subsidiary

The National Company Law Tribunal (NCLT) Delhi on Wednesday issued a show cause notice to DLF Home Developers, a subsidiary of DLF, asking why the corporate insolvency resolution process be not initiated against them. The judge Deepti Mukesh asked the company to file their response by 18 January 2019. The order relates to DLF Capital Greens, a residential project situated in New Delhi where the buyer had booked a flat in 2010. According to the builder-buyer agreement the possession was to be offered in 2013, which never happened.

The possession date was then revised in a unilateral agreement and moved to 2015. The case was initially filed in NCLT-Chandigarh under section 7 of Insolvency and Bankruptcy Code 2016 against the then DLF Universal Limited. However the builder made a plea through its advocate Gaurav Mankotia saying that all the real estate business has been de-merged to DLF Home Developers, hence the matter was moved to the Delhi branch. The home buyer has also sought refund of his money and a separate case has also been filed in NCDRC against DLF Home Developers for the same

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