Lokhandwala Infrastructure Private Limited, the second-biggest developer goes insolvent under the provisions of the Insolvency and Bankruptcy Code (IBC).

The National Company Law Tribunal has launched a case against renowned Mumbai developer Lokhandwala Infrastructure Private Limited for insolvency settlement and has asked operational creditors, financial creditors, home buyers and employees to give proof in their claims by October 3.

Proclamation issued by Ajit Kumar, the NCLT-appointed Insolvency Resolution Professional, said NCLT’s Mumbai Bench ordered the process to be initiated on September 19 and hopes to conclude by March 17, 2020.

Lokhandwala Infrastructure is the second biggest developer to become insolvent after Housing Development and Infrastructure Ltd (HDIL) under the provisions of the Insolvency and Bankruptcy Code (IBC). On 26 August, NCLT initiated insolvency proceedings against HDIL after failing to repay dues to Bank of India on the tune of Rs 522 crore.

The insolvency proceedings had occurred just months after Shapoorji Pallonji group’s real estate arm Shapoorji Pallonji Real Estate (SPREL) announced a collaboration with the Lokhandwala group to collectively develop Minerva in Mahalaxmi’s a marquee project.

According to sources, SPREL has come in May this year on board to develop, manage and market the iconic project.

Registered under Lokhandwala Kataria Building Private Limited, the project will be developed in a luxury 78-storey building with 3 BHK, 4BHK duplex apartments, and also with a penthouse, according to the Website of the Maharashtra Real Estate Regulatory Authority. 

Source: Economic Times.