To: @RBI @RBIsays The Governor Reserve Bank of India (RBI) Central Office Building, 18th Floor, Shahid Bhagat Singh Road, Fort, Mumbai - 400001, Maharashtra. And The Chairperson Insolvency and Bankruptcy Board of India (IBBI) 7th Floor, Mayur Bhawan, Shankar Market, Connaught Place, New Delhi - 110001. Subject: Formal Complaint and Demand for Immediate Investigation into Predatory Over-Financing, Financial Irregularities, Fraudulent Conduct, and use of Voting Power by ARCIL to force housing project in liquidation (Asset Reconstruction Company (India) Ltd.) in the Insolvency Process of Vijay Group Housing Pvt. Ltd. (Vijay Estate Vakas Project) @PMOIndia @FinMinIndia Respected Sir/Madam, We, the home buyers of Vijay Group Housing Ltds housing project at Vijay Estate Vakas, Neral Maharastra, formally demand an immediate high-level joint investigation by the Reserve Bank of India (RBI) and the Insolvency and Bankruptcy Board of India (IBBI) into the lending practices of L&T Finance Ltd., L&T Housing Finance Ltd., and Aditya Birla Finance Ltd., as well as the subsequent use of dominant voting power by ARCIL (Asset Reconstruction Company (India) Ltd.) in the Corporate Insolvency Resolution Process (CIRP) of Vijay Group Housing Pvt. Ltd. (VGHPL) concerning the “Vijay Estate Vakas” project. 1. Evidence of Reckless Over-Financing and Negligence (Audited Financial Report and Transaction Audit Report by Pipara & Co. – “Audit Transaction Report Vijay Group Housing Ltd”) The lenders sanctioned and disbursed exorbitant loans to VGHPL during a period when the company was fundamentally non-viable. L&T Finance and L&T Housing Finance sanctioned an aggregate of ₹300 crores (₹185 Cr and ₹115 Cr respectively) under loan agreements dated 28 June 2017. Despite the project being severely delayed and the Corporate Debtor showing clear signs of financial distress, a total of ₹212.32 crores was disbursed. The Transaction Audit Report by Pipara & Co. explicitly reveals that the company was incurring significant losses: - FY 2015-16: Net Loss of ₹59,07,270 - FY 2016-17: Net Profit ₹45,10,779 (marginal) - FY 2017-18: Net Loss of ₹7,85,86,334 - FY 2018-19: Net Loss of ₹7,73,624 The fixed assets of Vijay Group Housing Ltd. were grossly inadequate to secure such huge loan amounts. The granting of these massive facilities to a loss-making entity demonstrates a complete failure of due diligence and raises serious concerns of collusive or predatory lending. 2. Impact on 296 Vulnerable Homebuyers The project involves 296 homebuyers, many of whom are senior citizens, retirees, or from lower-middle-class backgrounds. Most have paid 98% to 100% of the flat cost, with several buildings 90% complete. These buyers were also granted subsidies under the Pradhan Mantri Awas Yojana (PMAY). Despite this, they are now rendered homeless due to the lenders’ actions and the subsequent insolvency process. 3. Voting by ARCIL and Adity Birla for liquidation of home buyers housing project. The lenders (and subsequently ARCIL, which acquired the stressed assets) have utilized their inflated debt claims — resulting directly from the reckless over-financing — to dominate the Committee of Creditors (CoC) and Stakeholders Consultation Committee (SCC). In the 15th CoC meeting, lenders holding over 81% voting share (ARCIL ≈ 71.89% and Aditya Birla Finance ≈ 9.61%) rejected a revised resolution plan that could have completed the homes for the buyers and opted instead for liquidation. This effectively silenced the homebuyers’ 11.28% vote, which strongly favored resolution. This constitutes clear misuse of voting power by ARCIL to force liquidation instead of value-maximizing resolution, in violation of the spirit of the Insolvency and Bankruptcy Code, 2016. Resolution plan of Value 123 CR was rejected and now in liquidation value of the project approved for liquidation is reduced to 106 CR, by these lenders entities 4. Demands for Action The Home Buyers Association demands the following from RBI and IBBI: - RBI: Immediate investigation into the lending practices of L&T Finance, L&T Housing Finance, and Aditya Birla Finance, and consideration of cancellation or suspension of their NBFC/banking licenses for unethical lending, failure of due diligence, and failure to monitor end-use of project funds. - IBBI: Urgent investigation into the conduct of the CoC, Resolution Professional, and specifically the misuse of dominant voting power by ARCIL that led to the rejection of a viable resolution plan and forced liquidation, in clear prejudice to homebuyers’ interests. - Joint Referral: Hand over the case to the Enforcement Directorate (ED) and CBI to investigate the siphoning of project funds and the “created bankruptcy” of Vijay Group Housing Pvt. Ltd. - Protection of Homebuyers’ Rights: The “Going Concern” status of the project must be prioritised over liquidation to protect the life savings of 296 families. We trust that your esteemed offices will treat this matter with the utmost urgency to prevent this systemic financial fraud and to safeguard the interests of vulnerable homebuyers under the provisions of the RBI Act, the Insolvency and Bankruptcy Code, and other applicable laws. The Association is ready to provide all supporting documents, including the attached audit reports, CoC meeting minutes, and NCLT orders, for your immediate perusal. Sincerely, For Vijay Estate Vakas Home Buyers Association Mr. Chandrakant Dandekar Chairman Contact: 9920427526 Email: homebuyersvijayestatevakas@gmail.com 1. Audited Financial Statements and Transaction Audit Report (Can be sent on email on request) 2. Relevant CoC Meeting Minutes (15th Meeting Can be sent on email on request) 3. NCLT Order dated 10 March 2026 (Can be sent on email on request) 4. List of Homebuyers and Payment Proofs (Can be sent on email on request)
