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NCLT initiates insolvency proceedings against Ansal API over debt dispute

#Law & Policy#India
Last Updated : 28th Feb, 2025
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Synopsis

The NCLT has initiated insolvency proceedings against Ansal Properties and Infrastructure Ltd (Ansal API) following a petition by IL&FS Financial Services over a loan default of INR 257 crore. While Ansal API disputes the amount, the tribunal noted that the debt surpasses the INR 1 crore threshold under the Insolvency and Bankruptcy Code (IBC). This move impacts homebuyers and investors in the company’s projects, with a Committee of Creditors (CoC) set to be formed. Ansal API has faced past insolvency cases, including its ‘Fernhill’ and ‘Serene Residency’ projects, reflecting ongoing financial distress despite recent debt reduction efforts.

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The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Ansal Properties and Infrastructure Ltd (Ansal API) following a petition by IL&FS Financial Services. IL&FS claims that Ansal API defaulted on loans amounting to INR 257 crore. Ansal API acknowledged the debt but disputed the amount, suggesting it owed INR 83 crore. The NCLT, however, noted that this dispute over the exact amount does not affect the application's admissibility, as the debt exceeds the statutory threshold of INR 1 crore under the Insolvency and Bankruptcy Code (IBC).


This development is significant for stakeholders, including homebuyers and investors involved in Ansal API's various projects. The initiation of the Corporate Insolvency Resolution Process (CIRP) aims to address the financial distress of the company and explore potential revival strategies. The next steps involve forming a Committee of Creditors (CoC) and submitting a resolution plan to revive the company's operations.

Ansal API has faced financial challenges in recent years. According to its Annual Report for the financial year 2023-24, the company reported a net profit of INR 479.54 lakh, a significant improvement from the loss of INR 38,141.70 lakh in the previous year. However, the total income decreased to INR 48,128.89 lakh from INR 66,171.89 lakh in 2022-23. Additionally, the company's loans decreased by INR 5,655.11 lakh, indicating efforts to reduce debt.

This is not the first time Ansal API has encountered insolvency proceedings. In November 2022, the NCLT admitted the company into CIRP concerning its 'Fernhill' project in Gurgaon. Later, in October 2023, the 'Serene Residency Group Housing Project' in Greater Noida was also brought under CIRP. These instances highlight ongoing financial and operational challenges within the company's projects.

The outcome of the current insolvency proceedings will be closely monitored by all stakeholders, as it will determine the future course of action for Ansal API's projects and financial obligations.
Next (RBI reports 3.1% rise in India�s housing prices with Kolkata in the lead)

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