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The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution proceedings against Sankalp Siddhi Developers, a real estate special purpose vehicle (SPV). This SPV, initially promoted by Ahuja Hive, now known as Hive Carbon-Zero Developers, for a project in Mumbai’s Jogeshwari suburb, has been under the control of the Chinese group Fosun since 2022.
The insolvency petition was filed by Lekha Enterprises, the company's operational creditor, due to default in payments for services rendered under a work contract awarded in June 2022. Sankalp Siddhi Developers, in response, stated it's an SPV promoted by Ahuja Hive (Hive Carbon-Zero Developers).
Hive Carbon-Zero Developers, promoted by Gautam Ahuja with investment from Agape Team Holdings, was led by Ahuja until January 2022. Allegations surfaced regarding Ahuja's involvement in fraud related to the SPV, defrauding multiple investors across India.
The company claims Ahuja abandoned the joint venture and the project, leaving them stranded and facing commercial and financial adversities. However, Lekha Enterprises contends that the SPV, under Chinese control, entered into a contract with them and is now attempting to shift responsibility to Ahuja Builders.
The SPV asserts it has no intent to evade legal obligations but has been unable to pay the operational creditor. They are exploring engaging third-party developers for the project's development.
The NCLT Mumbai bench found evidence of debt and default, crucial for admitting the insolvency plea. The SPV acknowledged the bills raised by Lekha Enterprises via email on February 16, 2023, seeking more time for payment, but failed to clear the dues, leading to the insolvency order.
Rajkumar Jaiswal has been appointed as Interim Resolution Professional (IRP) to oversee the insolvency resolution process according to the Insolvency & Bankruptcy Code, 2016.
The latest data from IBBI indicates that until December, 7,325 companies across sectors were brought into administration. Of these, 1,538 (21%) were from the real estate sector since the inception of the IBC in 2016.
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