The National Company Law Tribunal (NCLT) has initiated the corporate insolvency resolution process (CIRP) against the ATS Knightsbridge project located in Noida’s Sector 124. The move comes after the builder, ATS, allegedly defaulted on payments of Rs 285 crore and Rs 47 crore to its lenders.
According to the order issued by the NCLT, the ASK Trusteeship Services Private Limited, representing ASK Real Estate Special Opportunities Fund and ASK Real Estate Special Opportunities Fund II, initiated the CIRP process against ATS Heights Private Limited, the realty firm developing the Knightsbridge project.
The NCLT bench, comprising Justice Ashok Kumar Bhardwaj and Subrata Kumar Dash, appointed Gaurav Katiyar as the interim resolution professional (IRP) for the project. The IRP has been directed to ensure that the construction work continues without disruption and that the suspended promoters and management of the corporate debtor comply with Section 19(1) of the Insolvency and Bankruptcy Code (IBC), 2016.
The ATS promoter, Getamber Anand, argued that there was no default on the company’s part as the outstanding amount was not a ‘debt’ but an equity investment. However, the NCLT admitted the plea and initiated the CIRP process, considering the default committed by the realty company.
The ATS Group had purchased the 11.5-acre land for the project from the Logix Group in 2012. The developer was supposed to develop 60% commercial and 40% residential units on the land located along the Noida-Greater Noida Expressway. The Noida authority had approved the building layout maps and construction permits in May 2016.
The ATS Knightsbridge project consists of five 47-storey residential towers, and the developer has partially completed the residential towers. The company’s promoter, Getamber Anand, expressed hope that the matter will be resolved amicably with the entities that initiated the CIRP process. He emphasized that the issue was not related to debt or default but rather an equity investment in the company.
