NCLT admits application for initiating insolvency proceedings against HDIL

The National Company Law Tribunal (NCLT) on Tuesday admitted an application filed by Bank of India to initiate insolvency proceedings against debt-ridden realty firm HDIL. In a regulatory filing, Housing Development and Infrastructure Ltd (HDIL) informed that the company has been "admitted under the provisions of The Insolvency Bankruptcy Code, 2016 (IBC)" as per the order passed by the NCLT, Special Bench, dated August 20, 2019 pursuant to an application filed by the Bank of India under Section 7 of IBC.

"Further, the company is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT) against the order passed by the NCLT," HDIL said in the filing. Insolvency proceedings have been initiated against many real estate developers, including Jaypee Infratech, mainly because of default in loan repayment to banks as well delivery of flats to home buyers.