NCLT Orders Initiation Of Insolvency Proceedings Against MGF Developments

[email protected]10 Dec, 2021News

The National Company Law Tribunal (NCLT) on November 30 ordered that insolvency proceedings against MGF Developments be initiated and appointed Gaurav Katiyar as an interim resolution professional after suspending the board of the real estate company. A two-member Delhi-based bench of NCLT allowed a plea filed by the residents association of The Vilas Condominium, a project in Gurgaon, for breach of clauses of the agreement between them, terming it as default. The application under Section 7 of the IBC Code, 2016 was filed by The Vilas Condominium Association consisting of homebuyers having 327 units who had alleged that the amount of Interest-Bearing Maintenance Security (IBMS) collected from them has not been refunded to them.