SC Rules on Insolvency and Land Use Cases

The Supreme Court of India made two important decisions.

First, it ruled that the completion stage of a real estate project cannot be used to avoid insolvency proceedings.

The court said that once a debt and default are established, insolvency must follow.

Second, the court set aside a high court order that directed a CBI investigation into alleged illegal land use for the Ambience Mall in Gurugram.

The court found that the high court's decision was based on unverified information and that the construction was done legally.

The court also asked a Delhi court to take cognisance of CBI chargesheets related to the nexus between banks and developers that duped homebuyers.