NCLT imposes Rs. 1 Crore penalty on the Wave Megacity Centre Pvt. Ltd. on filing CIRP under Section 10 of IBC, 2016 to play fraud on thousands of Home Buyers, Noida Authority, Government Authorities etc. and directs the Central Government to make necessary investigation into the affairs of the Corporate Debtor – Mr. Rakesh Taneja & Others Vs. Wave Megacity Centre Pvt. Ltd. – NCLT Principal Bench

The Adjudicating Authority held that the Application filed under Section 10 of IBC, 2016 was an attempt on the part of the Corporate Debtor to play fraud on thousands of Home Buyers, Noida Authority, Government Authorities etc. Further great prejudice must have caused to them if the CIRP was triggered. Therefore, we are imposing Rs. 1 Crore penalty on the Corporate Debtor which shall be deposited in Prime Minister’s Relief fund within 15 days from today. That we have observed serious allegations against the Corporate Debtor with respect to siphoning off the money collected from Home Buyers. Furthers there is evidence produced by the Home Buyers that the Corporate Debtor was taking huge amount of cash from the Home Buyers. It is surprising to note that despite receiving the entire amount from the Home Buyers the Corporate Debtor failed to either give possession or returned the money. Therefore, we are of the view that the affairs of the Corporate Debtor were conducted with the intent to play fraud on the creditors of the Corporate Debtor. In light of above circumstances, we direct the Central Government to make necessary investigation into the affairs of the Corporate Debtor.

NCLT imposes Rs. 1 Crore penalty on the Wave Megacity Centre Pvt. Ltd. on filing CIRP under Section 10 of IBC, 2016 to play fraud on thousands of Home Buyers, Noida Authority, Government Authorities etc. and directs the Central Government to make necessary investigation into the affairs of the Corporate Debtor – Mr. Rakesh Taneja & Others Vs. Wave Megacity Centre Pvt. Ltd. – NCLT Principal Bench Read Post »