The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has recently issued an important public advisory for homebuyers. Since January 2024, a total of 129 projects of 14 real estate companies have been admitted into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT). Once the insolvency process begins, all these projects come under the exclusive jurisdiction of the NCLT, which completely alters the existing legal procedures.

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Why RERA Proceedings Stop After Entering CIRP

As soon as a real estate project is admitted into CIRP, a moratorium is imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC). During this moratorium, all types of legal actions, recovery proceedings, punitive actions, or regulatory interventions automatically cease. Therefore, UP RERA has clearly stated that it cannot proceed with any complaints, hearings, or enforcement orders during this period.

All Claims Will Now Be Accepted Only by the IRP

UP RERA has instructed homebuyers to file all their financial claims only with the Insolvency Resolution Professional (IRP) appointed by the NCLT for each project. The IRP will now examine the complaints, rights, and claims of each buyer. The authority has advised buyers to submit their claims using the prescribed forms, such as Form CA or other necessary formats issued by the IBBI and NCLT.

Which Companies Have Entered CIRP

Since January 2024, the NCLT has initiated proceedings against several large and well-known real estate companies. The prominent companies include Ajnara Realtech, Supertech Township Project, Kindle Infra Heights, BCC Infrastructures, Morpheus Pro Developers, Mist Direct Sales, Rudra Buildwell, ATS Heights, Nobility Estates, Vardhaman Infradevelopers, Nikhil Homes Associates, Mahagun India, Supertech Realtors, and Ansal Properties and Infrastructure Ltd. Of these, Ansal Properties has the highest number of projects (97) under the insolvency process, which is considered the largest action taken so far. Buyers advised to contact IRP regularly

The authority has stated that all processes related to the Corporate Insolvency Resolution Process (CIRP) will now proceed only through the National Company Law Tribunal (NCLT) and the Interim Resolution Professional (IRP). Therefore, buyers are advised to maintain regular contact with the IRP, obtain information about Committee of Creditors (CoC) meetings, and stay updated on the progress of the CIRP. UP RERA has also made the complete list of 129 affected projects available on its website.

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RERA is completely inactive until the moratorium ends

The authority has clarified that it cannot hear any buyer or builder until the moratorium ends. Therefore, buyers should rely only on official communications from the IRP and the NCLT and ensure the protection of their financial interests by submitting their claims on time.