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The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) is contesting the National Company Law Tribunal's (NCLT) order admitting Ansal API into insolvency, filing an impleadment before the National Company Law Appellate Tribunal (NCLAT). The move aims to ensure that the developer fulfills its obligations to homebuyers, who have long awaited possession or refunds. UP-RERA has recovered INR 125.39 crore for buyers but flagged INR 113 crore in pending dues and non-compliance with 1,234 orders. Similar interventions by MahaRERA and K-RERA highlight the growing role of regulators in holding developers accountable and protecting homebuyers' rights.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has taken a significant step to protect homebuyers by challenging the National Company Law Tribunal's (NCLT) order dated February 25, 2025, which admitted Ansal Properties and Infrastructure (Ansal API) into insolvency proceedings. UP-RERA plans to file an impleadment application before the National Company Law Appellate Tribunal (NCLAT) to ensure that Ansal API fulfills its obligations to homebuyers and does not evade its responsibilities. Advertisement
Ansal API has been under scrutiny for its failure to complete various housing projects in Uttar Pradesh, particularly in Lucknow and Gautam Buddha Nagar. Thousands of homebuyers have invested their life savings into these projects and have been awaiting possession of their homes for years. UP-RERA has received numerous complaints from aggrieved allottees seeking possession or refunds. To date, the authority has addressed 2,825 such complaints and has successfully recovered INR 125.39 crore for the allottees. However, many buyers are still awaiting possession of their houses or plots.
The authority has also highlighted that Ansal API has not complied with 1,234 of its orders. Additionally, 619 recovery certificates amounting to INR 113 crore, due to the allottees, are still pending. Furthermore, 27 recovery certificates totaling INR 19.73 crore have been issued as penalties against the promoter for non-compliance with RERA orders and violations of the RERA Act.
In January 2025, UP-RERA imposed a penalty of INR 14.40 crore on Ansal API in six cases where the promoter was found unlawfully registering sale deeds of plots without registering the land parcel with the authority. Recovery certificates for these penalties have been sent to the District Magistrate of Lucknow for enforcement.
This move by UP-RERA to approach the NCLAT is unprecedented since the commencement of the Insolvency and Bankruptcy Code (IBC). The authority aims to ensure that the interests of homebuyers are safeguarded and that Ansal API does not shirk its responsibilities. UP-RERA is also urging the Insolvency Resolution Professional (IRP), Navneet Kumar Gupta, to prioritize payments against RERA's recovery certificates.
Similar regulatory interventions have been observed in other parts of India. For instance, the Maharashtra Real Estate Regulatory Authority (MahaRERA) took action against a developer in Mumbai for significant project delays and fund mismanagement. The authority deregistered the project and appointed a new developer to ensure completion, thereby protecting the interests of over 1,500 homebuyers.
In another example, the Karnataka Real Estate Regulatory Authority (K-RERA) intervened in a stalled Bengaluru project where the developer had diverted funds, leaving the project incomplete. K-RERA facilitated the formation of an association of homebuyers and assisted them in taking over the project's completion, ensuring that the buyers' investments were safeguarded.
Homebuyers affected by the delays and non-compliance of Ansal API are hopeful that UP-RERA's intervention will expedite the resolution of their long-standing issues.
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