How do I check if a builder is in NCLT or insolvency proceedings?
Search for the builder or their parent company on the IBBI (Insolvency and Bankruptcy Board of India) website at ibbi.gov.in. Go to "Corporate Insolvency Resolution Process" and search by company name. Alternatively, search on the NCLT Case Status portal at nclt.gov.in. An admitted CIRP (Corporate Insolvency Resolution Process) petition means a creditor has successfully filed for insolvency — this is a red flag and triggers the ≤3.9 score cap on Brickplot.
What is the IBBI and why does it matter for property buyers?
The Insolvency and Bankruptcy Board of India (IBBI) oversees insolvency proceedings for companies and individuals under the Insolvency and Bankruptcy Code (IBC) 2016. If a builder's parent company files for insolvency under IBC, homebuyers are classified as financial creditors (post-2018 amendment) and can participate in the resolution process. However, project completion timelines become highly uncertain — IBC proceedings can take 2–5+ years.
What is the difference between NCLT proceedings and eCourt litigation for a builder?
NCLT (National Company Law Tribunal) handles corporate insolvency, mergers, and company law violations — these are typically initiated by banks, creditors, or operational creditors for unpaid dues. eCourt litigation (civil courts, consumer forums, High Court) covers consumer complaints, buyer-vs-builder disputes, and criminal cases. NCLT proceedings represent systemic financial distress; eCourt cases may just be individual buyer disputes. Both matter but NCLT risk is more severe.
How does Brickplot assess builder financial health in its scoring?
Brickplot's Axis 3 (Builder Financial Health, weight: 12) evaluates: NCLT/IBC petition status (hard cap ≤3.9 if admitted), SFIO/CBI/ED investigation status (hard cap ≤3.9 if active), RERA escrow compliance, promoter conviction history, and qualitative signals like past delivery track record from QPRs. The score is displayed on each project review page and uses the same formula as the Brickplot 11-axis score rubric.
What is a "stalled" project and when should I be worried?
A project is considered stalled when there has been no visible construction progress for 6+ months as evidenced by RERA QPRs or satellite imagery. Brickplot's satellite sweep flags stalled projects weekly. If a project is stalled for more than 18 months, a hard cap of ≤4.4 applies. Beyond 24 months of stall without resolution, buyers should strongly consider invoking their RERA Section 18 refund rights rather than waiting further.
Are SFIO or CBI investigations a deal-breaker for buying in that builder's project?
Yes — Brickplot applies a hard cap of ≤3.9 (Avoid verdict) for any project where the promoter or parent company is under an active SFIO (Serious Fraud Investigation Office) or CBI/ED investigation. These investigations typically involve large-scale fraud allegations and severely compromise the builder's ability to complete projects and meet financial obligations. Avoid buying in such projects until the investigation is resolved.
How can I find past complaints against a builder?
Multiple sources: (1) State RERA portal — search for orders/judgments against the builder's RERA registration. (2) eCourts (ecourts.gov.in) — search by company name for pending and disposed civil/criminal cases. (3) National Consumer Disputes Redressal Commission (NCDRC) website for consumer forum orders. (4) Brickplot's project review pages — litigation and NCLT status are displayed as verified artefacts when data is available.
What delivery track record data is publicly available for builders?
RERA QPRs (Quarterly Progress Reports) on state RERA portals show completion percentages and whether possession was given on time for each registered project. By comparing the promised possession date in RERA Form A with actual delivery from completed projects, you can calculate a builder's delivery variance percentage. Brickplot aggregates this data for top builders — the delivery variance is shown in the builder context section on project review pages.
Is a builder with a "Group" or "Realty" entity name safer than an SPV?
Not necessarily. Most large builders use Special Purpose Vehicles (SPVs) — separate companies for each project — which are legal entities distinct from the parent group. If the SPV goes insolvent, the parent group is not automatically liable (unless it has given a corporate guarantee). Always verify that the RERA registration names the same entity that is the promoter on your sale agreement. Cross-check the entity on MCA21 (mca.gov.in) for the company's paid-up capital and financial filing history.
What questions should I ask a builder before signing an agreement?
Key questions: (1) Is the RERA escrow account active — can you share recent escrow statements? (2) What is the APF (Approved Project Finance) list of banks? (3) Is the parent company or any group entity in NCLT or IBC proceedings? (4) What is the exact carpet area as per RERA Form A? (5) What penalty will you pay for delay per month? (6) Has OC been applied for similar past projects on time? (7) Are all approvals (RERA, BBMP, fire NOC, airport NOC if applicable) in place?