Uttar Pradesh Chief Minster Yogi Adityanath on Monday took cognisance of the Ansal API insolvency case and directed the officials to initiate action against it. During the review meeting of the works of the Housing and Urban Planning Department on Monday, the Chief Minister said that Ansal Group has cheated the home buyers, which the government will not tolerate. During this, he directed to take action against all the responsible officers of the company.
While giving instructions to ensure the protection of the interests of the buyers affected by the incident, the CM said that FIRs should be lodged in all the districts where cases like Lucknow are coming up against the Ansal Group. The Chief Minister also gave instructions to form a committee of LDA and the aggrieved buyers so that strong evidence can be presented against Ansal in the court. This will make it easier for the court to punish the people of the Ansal API Group.
During the meeting, the officials also told CM Yogi that NCLAT had passed a unilateral order without giving notice to the Lucknow Development Authority and the Housing Department. The Chief Minister expressed displeasure over this and directed the Authority to organize an appeal against the said order in the larger public interest.
What the case is?
The National Company Law Tribunal (NCLT) has declared Ansal API bankrupt, which has put thousands of buyers and investors in crisis. As per the procedure, the tribunal has also appointed an Interim Resolution Professional (IRP) to handle the company's projects.
The IRP will evaluate Ansal API Group's projects in Lucknow, Noida and other cities. The bankruptcy and insolvency proceedings will put investors' money in limbo. In Lucknow, the buyers of the group's major project, Sushant Golf City, started protesting after the NCLAT declared the group bankrupt.
As per the protestors, some 3,000 investors who bought plots, villas and flats, among other spaces, face uncertainty. Some investors have even been waiting for possession since 2009. The protestors raised concerns and urged the Chief Minister to take action while protesting. Sarojini Nagar MLA Rajeshwar Singh is likely to meet the investors after their money is in limbo.