Ansal API’s bankruptcy plea leaves plot owners in the lurch

Having waited in vain for a decade to get possession of their properties, plot owners have been left in the lurch by Ansal API’s bankruptcy application in the National Company Law Tribunal (NCLT).

Sharing his ordeal, an affected investor, Gagan Tandon, said he purchased a plot in 2011 in Sector P and paid 50% of the booking amount.

After a few years, with no sign of development, the company relocated his plot to Sector O in Phase 2, he said, adding that the company assured him that possession would be granted soon, but later it was revealed that the land in Sector O was also not owned by the company.

“Since then, I have only been given empty assurances that development will take place and my plot will be handed over. Now, the company has defaulted on ₹83 crore to IL&FS Financial Services Limited, and insolvency proceedings have been initiated by NCLT. As a homebuyer, I feel completely cheated because I have an agreement, but the land does not exist, and the company never actually owned it,” he said.

Tandon further claimed that a portion of land within the scheme, which was mortgaged with the Lucknow Development Authority (LDA) as assurance, was illegally sold by Ansal to various buyers, and registrations were completed.

“Now, people only have documents for which they have paid the full amount, but there is no real land available for possession. Several buyers have passed away during this long ordeal, yet their families are still waiting for their plots,” he added.

Many investors accused the company of attempting to evade financial liabilities by declaring bankruptcy. Manish Mishra, another investor, alleged that while Ansal moved to NCLT over a liability of ₹83 crore, it had collected over ₹650 crore from investors in Lucknow, Agra, and Ajmer in just the past six months.

“This appears to be a well-planned conspiracy to avoid fulfilling commitments. The company has systematically collected huge sums from buyers while failing to deliver on its promises,” Mishra alleged.

DP Mishra, another affected investor, said, “Over 10,000 investors are still waiting for their plots, and our money is stuck.” Investors are now urging the state government to take immediate action. RR Yadav insisted that the government should take control of the stalled project and hand it over to LDA for completion. Rituraj Mishra added the state government has the power to resolve the issue if it chooses to act.

Rajiv Singh, who purchased two plots in 2010, said, “It has been 15 years, and I am still waiting for possession. The company kept misleading us with fake assurances.”

Many investors accused company officials of deceptive sales tactics. They claimed that during the booking process, Ansal representatives showed them agricultural fields instead of actual plots. Later, the company presented “official-looking” layouts and so-called “government approvals” in their office to build investor trust.

“At that time, no one thought such a big developer could deceive us,” an investor said.

Investors also alleged that Ansal used LDA’s role as a nodal agency to make their projects appear more credible, misleading thousands of buyers.

Demands for government intervention

With thousands of crores of rupees at stake, investors are now demanding that the state government take responsibility for the project and ensure they receive their promised plots.

Gagan Tandon said, “The government needs to step in and protect homebuyers. The project should be handed over to LDA, which can ensure its completion.”

Abhishek Vasisth, a worker at Ansal API, responded to the concerns, saying, “We are also unaware of the issue and do not know what stand the company will take. We are waiting for instructions from senior officials and will act accordingly.”

Meanwhile, when Hindustan Times tried contacting Rajeshwar Rao, the head of Ansal Projects Lucknow, he was unavailable for comment.