Emaar MGF Land Joins List Of Realtors Facing Insolvency

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Emaar MGF Land after two homebuyers last year filed a petition against the developer for delay in flat delivery in a Gurgaon-based project. The developer neither delivered the units in its project Palm Greens by June 2015, as was promised in the sale agreement, nor refunded the amount to homebuyers.

The NCLT has appointed Manoj Kumar Anand as the interim resolution professional (IRP) in the case. Additionally, it has also directed the company and everyone concerned to “extend every assistance and cooperation to the interim resolution professional".

In December last year, two other homebuyers had filed a petition against the developer for its Mohali-based project, The View. The project, which was to be delivered 2012, has not been completed yet. Following which the NCLT had sent the realtor a show-cause notice. During the same time, the Enforcement Directorate had seized assets of former Emaar MGF managing director Shravan Gupta, worth Rs 10.28 crore, under the Foreign Exchange Management Act (FEMA). The former managing director had $15.40 million in his bank account maintained with HSBC in Switzerland.

It was in 2005 that Dubai-based Emaar Properties had entered the Indian real estate market in partnership with India's MGF Group to form a joint venture Emaar MGF Land for an investment of Rs 8,500 crore. However, a demerger was announced in 2016, following which Emaar India has been working on completing the existing projects across Gurgaon, Jaipur, Lucknow, Mohali and Chennai. Until December last year, the company has completed over 5,000 apartments, with over 4,500 acres of developable land bank across the country.