NCLT allows refund of EMD of Bidder since the title of property fell under the buffer zone which was not disclosed – Mr. Abhishek Agarwal Vs. Mr. Yedavilli Sai Karunakar, Liquidator of B.S. Ltd. – NCLT Hyderabad Bench

In this case, the land sold in the e-Auction fell under the buffer zone, which is preserved as Open Space Buffer Use Zone. No construction is permitted in the Open Space Buffer except for fishing, boating and picnics along the banks provided that only construction allowed is open to sky jetties for boating, platforms for fishing.
The liquidator did not even attempt to cause preliminary enquiry with regard to the land. He cannot take refuge under the Clause “As is where is basis and whatever is where is basis”. He is expected to disclose the available details of the land and details of the land which can be obtained from the public domain.
In the circumstances, we deem it just to order for the refund of the Earnest Money Deposit of the applicant since it would amount to undue enrichment of the Corporate Debtor.

NCLT allows refund of EMD of Bidder since the title of property fell under the buffer zone which was not disclosed – Mr. Abhishek Agarwal Vs. Mr. Yedavilli Sai Karunakar, Liquidator of B.S. Ltd. – NCLT Hyderabad Bench Read Post »