SC Upholds Insolvency Proceedings Against Greater Noida Developers

In a significant ruling for homebuyers and commercial investors, the Supreme Court of India has upheld the initiation of corporate insolvency resolution proceedings against Bhasin Infotech and Infrastructure Private Limited and Grand Venezia Commercial Towers Private Limited, linked to a stalled real estate project in Greater Noida.

A bench comprising Justices Sanjay Kumar and K Vinod Chandran dismissed appeals filed by the former directors of the companies, including Satinder Singh Bhasin, thereby clearing the way for insolvency proceedings to continue.

The court found that the developers failed to deliver functional units to buyers despite collecting full consideration. It also rejected the companies’ argument that construction had been completed and possession handed over to some allottees, stating that these claims lacked both merit and factual backing.

Writing the judgment, Justice Sanjay Kumar observed that while the developers relied on letters and documents to suggest partial delivery, the “ground reality” told a different story. The court noted that construction was incomplete and that possession could not legally be handed over without fulfilling mandatory completion formalities.

Importantly, the verdict confirmed that the insolvency petition filed by allottees of 103 units was fully maintainable. The bench held that the buyers successfully established both financial debt and default, as the promised units were neither completed nor delivered even after substantial payments.

Legal experts say the ruling reinforces accountability in the real estate sector, especially in cases where developers delay projects while continuing to assure buyers of progress. The judgment also strengthens the position of homebuyers and commercial allottees under insolvency law, affirming that failure to deliver ready-to-use units constitutes a clear default.

The decision is expected to serve as a precedent for similar stalled projects, offering relief to affected buyers and sending a strong message to developers about transparency, timely delivery, and compliance with statutory obligations.

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