The Supreme Court on Tuesday (May 5) observed that for protecting the rights of the homebuyers and paving a way for completion of the stalled real estate projects, the corporate veil may be lifted during the Corporate Insolvency Resolution Process initiated against the holding company, by allowing the inclusion of the assets of the subsidiary companies.
Setting aside the NCLAT’s decision, which had refused to treat a subsidiary company’s assets as part of the holding company’s assets during the latter’s CIRP, a bench of Justice Sanjay Kumar and Justice Alok Aradhe provided relief to homebuyers who had invested amounts to purchase dwelling units in the real estate company’s housing projects. These projects had stalled because the…