This petition is being initiated by the 1700 homebuyers of The Aranya, Sec 119, Noida, a project of Unnati Fortune Holdings Ltd. which is in insolvency proceedings since Aug 2019 with Resolution professional Sanjay Gupta, Anil Goel of AAA Insolvency.

Homebuyers across India have been struggling through RERA, Insolvency, Liquidation proceedings since around 2018 with no end in sight. Whether you name Jaypee or Amrapali or Unnati Fortune - Hard earned money of thousands and lakhs of innocent tax paying population is stuck.

Resolution professional was appointed who charges huge fees without any accountability - there is no capping on the fees or governance on their actions. Even during COVID suspension when there was no action or outcome, RP continued to charge hefty fees.

IBC has specified set timebox for the process which is not followed. We've a resolution plan waiting to be voted by the COC. However it is stuck in NCLT since Aug 2020 due to a stay taken by ICICI bank. They have objected to treatment of Homebuyers as secured financial creditors by the RP. Clear intent of ICICI Bank is to dissent to the resolution plan and hence they are trying to maximize their liquidation value (which they are entitled to in case of dissent). At the same time, we fail to understand how can the resolution professional take a stand against SC clarification. SC has clarified already in comments that homebuyers are unsecured financial creditors. Nonetheless, the delay caused is hugely effecting the interest of large population of homebuyers and the future of corporate debtor too. Since 17-Aug-20. the matter is repeatedly pushed in NCLT, even despite the urgent hearing application filed in Feb 2021.

We believe that all of this is part of the design to drag Unnati Fortune Holdings Ltd to liquidation..

Land authority (Noida authority in this case) brought up objections to basic documentation like Joint Development Agreement (on which Builder Buyer Agreement is based and the project is sold) in NCLT to drag the proceedings. Entire project was sold by the promoter and 70-100% unit cost was taken from homebuyers on the basis of same JDA and BBA since 2011. Noida authority realized in 2020 to raise objection in NCLT asking that Land must be excluded from the resolution plan!

We worry that this exorbitant delay in process is putting the viability of this company at risk, constantly draining out the liquidity and lowering the RA margins and dragging it towards liquidation.

All this when Supreme court has clearly mentioned that the benefit of homebuyers must take precedence from banks and land authorities.

We need the government to look in to the plight of the homebuyers and instruct banks and land authorities not to halt CIRP proceedings in NCLT - especially in real estate cases, and let the companies revive quickly. Also give necessary guidelines to IBBI and NCLT for the required governance in process. There are few specific things requiring attention by the Government:

• Lack of Due diligence by banks and land authority (ICICI Bank  and Noida Authority in case of Unnati Fortune Holdings Ltd).

  SC has clearly mentioned that homebuyers’ interest shall be on top of everybody else. It can be a matter of investigation how the promoter managed to run away with funds despite the due diligence including escrow account. How come the bank failed to ensure safety of the funds disbursement as large as 200-300 crores, that they got awake only after the builder absconded. This might be a matter of investigation on the due diligence on part of ICICI bank. So far apparently even the personal guarantee of the promoters has not been invoked.

  In 2020, Noida Authority filed objection to the Joint Development Agreement which has been in effect since 2011. How come Noida Authority missed due diligence for 5-6 years after 90% of the project was sold to innocent homebuyers who had in turn paid 70-100% of the unit cost already.

  
  First both missed their due diligence and now 1700 homebuyers are being victimized by their actions in NCLT to halt the insolvency proceedings. This must not be allowed, we humbly request.
• Monitoring of Resolution Professional - There shall be some governance mechanism to validate the functioning of resolution professional. For example, Resolution Professional (RP) and Authorized Representative (AR) of homebuyers are both ignoring any request to even include any resolution to vote in COC. There hasn't been a single meeting of homebuyers with the AR so far. AR says that his job is to only get the voting done by homebuyers, while in reality voting is done electronically by the homebuyers directly. Both RP and AR are not responding to the emails from homebuyers. There is unfortunately no other way present in the IBC law to allow appropriate representation of thousands of homebuyers in the COC meetings, Or this is a sheer case of mis-coordination and gross misconduct by professionals at play.
• Time boxing of the insolvency process, as per IBC law. Arbitrary stays and adjournments impact viability or corporate debtors in insolvency process, in a big way
• Capping of RP fees which keeps heavily accumulating with delay. In this case the CIRP cost (of which 75% is RP fees) has accrued to 4.4 CR already. It shall be lump sum and not recurring, to ensure that RP doesn't become a beneficiary of dragging the process.

We request you to kindly look into the matter and help us in saving hard earned money of thousands of honest middle class taxpayers.