The National Company Law Tribunal (NCLT) has ordered initiation of corporate insolvency resolution process against real estate special purpose vehicle (SPV) Sankalp Siddhi Developers.
The SPV was promoted by Ahuja Hive, now known as Hive Carbon-Zero Developers, for the development of a project in Mumbai’s Jogeshwari suburb, and has been controlled and managed by Chinese group Fosun since 2022.
The company’s operational creditor, Lekha Enterprises, filed an insolvency petition following the default in its payments against services rendered under a work contract awarded by the company in June 2022.
Sankalp Siddhi Developers, in its reply to the petition, said it is an SPV promoted by Ahuja Hive (Hive Carbon-Zero Developers).
Hive Carbon-Zero Developers is incorporated and promoted by Gautam Ahuja, in which Agape Team Holdings has invested.
It has been stated that Ahuja was the CEO of Hive Carbon-Zero until January 2022, and it was discovered that Ahuja has committed fraud in respect of SPV by cheating multiple investors across India.
The contention of the company is that Ahuja abandoned the joint venture and the project, and due to this the company was stranded and continues to face various adversaries, commercially as well as monetarily. However, the operational creditor has a different take on this.
“The SPV was directly controlled by Chinese directors when it entered an express contract with the operational creditor and now, as an afterthought, it is trying to pass on the buck to Ahuja Builders,” argued Akash Rebello, counsel, and Chetan Kavdia, advocate and managing attorney of Secure Legal Mumbai, which is representing Lekha Enterprises.
The SPV, in its response, has sid that it has no malafide intention to wriggle out of its legal obligation, but it has been unable to pay the operational creditor.
Source: Economic Times