NCLT dismisses Wave Megacity Centre's plea to initiate insolvency proceedings against itself

Wave Megacity Centre had in March 2021 approached NCLT under Section 10 of the Insolvency & Bankruptcy Code (IBC).

Section 10 of IBC allows a debtor to initiate insolvency resolution process against itself if it has committed any default.

The realty firm, in its petition filed last year, had claimed that it had to pay an amount of Rs 1,222.64 crore to Noida Authority and it was unable to clear the dues.

When contacted, a spokesperson of Wave Megacity Centre said it will evaluate the NCLT order and decide the next course of action.

"The tribunal has just pronounced the order.

We will evaluate the order and will approach the appropriate court for the next course of action.

Our utmost priorities remain to protect the home-buyers interest, which we will continue to endeavour,” the spokesperson said.

"The tribunal has just pronounced the order. We will evaluate the order and will approach the appropriate court for the next course of action.

Our utmost priorities remain to protect the home-buyers interest, which we will continue to endeavour,” the spokesperson said.

The company has to provide its books of account and such other documents relating to the period specified in its petition.

The NCLT, within 14 days of the receipt of such petition, has to pass an order admitting or rejecting it.

However, the matter kept getting delayed due to opposition from the flat owners and property buyers.

According to the petition filed by the company, it had a loss of Rs 875.62 crore in FY 2019-20, and provisional loss of Rs 232.53 crore in FY 2020-21.