NCLT Orders Insolvency Proceedings Against MGF Developments

[email protected]16 Dec, 2021News

The National Company Law Tribunal (NCLT) on November 30 directed to initiate insolvency proceedings against MGF Developments and appointed an interim resolution professional after suspending the board of the realty firm. A two-member Delhi-based bench of NCLT passed the order by allowing a plea filed by the residents association of 'The Vilas Condominium,' a project at sector 25 of Gurugram, for breach clauses of the agreement between them, terming it as default. The Vilas Condominium Association, consisting of homebuyers having 327 units, had alleged the amount of Interest-Bearing Maintenance Security (IBMS) collected from them has not been refunded to them. They had also alleged that the common area maintenance and common area electricity charges, which MGF Developments was supposed to pay for the period from the date of accrual of maintenance charges till the date of allotment to a home buyer, have not been paid to them.