NCLT replaces IRP in stalled Festival City project in Noida’s Sector 143B

Narender Kumar Sharma has been removed as interim resolution professional for Festival City, the stalled housing project in Noida’s Sector 143B, and Sudhir Kumar Agarwal will take over the role.

The National Company Law Tribunal found that Sharma had failed to disclose disciplinary proceedings and had accepted the assignment without a valid Authorisation for Assignment, required for insolvency professionals taking up new work. Sharma had been appointed on July 19, 2024 for three co-developers in the project: Anand Infoedge Pvt Ltd, Mist Avenue Pvt Ltd and Mist Direct Sales Pvt Ltd.

The tribunal directed him to hand over all papers and material collected during his tenure. It also held that expenses incurred during that period, including legal fees, will not count as corporate insolvency resolution process costs and must be borne by Sharma.

Lawyer and complainant Shyam Kishan Saraf alleged Sharma collected about Rs 1.4 crore in fees over two years, at Rs 6 lakh a month. Sharma’s registration had been suspended for two years by the Insolvency and Bankruptcy Board of India in June over his role in the Indirapuram Habitat Centre matter.