Builders’ claim of insolvency and bankruptcy: UP government to set up high-level committee

Buyers have been a harried lot due to non-deliverance of housing units despite making payments. 

Published: 03rd April 2022 11:07 AM  |   Last Updated: 03rd April 2022 11:07 AM   |  A+A-

Home-buyers raise slogans during a protest in Noida on Saturday | PTI

LUCKNOW: Noticing the rising trend of private builders filing claims of insolvency and bankruptcy, the Uttar Pradesh government is planning to set up a high-level committee soon to find out the common reasons behind such move. 

Chief Minister Yogi Adityanath has ordered the Industrial Development Department to set up the panel with the mandate to look into the conditions which are compelling private builders to file for bankruptcy, leaving thousands of homebuyers in the lurch.

In fact, since Yogi cabinet 2.0 assumed charge, two prominent builders — Supertech Limited and Logix Citys — have filed for bankruptcy before the National Company Law Tribunal (NCLT). Earlier, Wave real estate group had filed for bankruptcy in March 2021. Prior to this, several big names of the real estate industry such as Amrapali, Jaypee Group, 3C Homes, Unitech and Sahara have faced insolvency proceedings in the past.

“Things are not streamlined. Uncertainty looms large even after the establishment of Real Estate Regulatory Authority. Why the developers are declaring themselves bankrupt needs to be probed,” said an officer. RERA came into force in UP on May 1, 2017.

A number of well-known firms declared themselves bankrupt, urging the NCLT to liquidate their assets so that they could arrange funds and deliver the incomplete projects. Buyers have been a harried lot due to non-deliverance of housing units despite making payments. 

In the NCR, especially Noida and Greater Noida, scores of  homebuyers have no clarity as to when will they get the possession of their flats booked under various projects of these builders. A majority of housing projects, launched during 2009-2014, remain incomplete. 


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

  • saurabh

    Registration of delivered flats is also a big problem. Since last 4-5 years there have been no registry of houses in Lotus Boulevard
    5 months ago reply
flipboard facebook twitter whatsapp