This real estate developer, which has its projects in Uttar Pradesh, Delhi NCR, Rajasthan and Punjab, is in the news for allegedly defrauding homebuyers and getting its tail in the bankruptcy proceedings.
Price movement
With a market capitalization of Rs. 82.67 Crores, the shares of Ansal Properties and Infrastructure Ltd. hit its 52-week low of ₹5.25 per share. The shares have been declining in the last 8 trading sessions. From its CMP, the stock is down by 66% when compared to its 52-week high of ₹15.58 per share
The Controversy
The ansal group is alleged to have violated the township policy and sold 99.75 acres of land located in Dundahera village by preparing fake documents. The company is also accused of not developing essential infrastructure, like power stations, sewage treatment plants, and water supply, as stated under the project agreements.
The company allegedly sold mortgaged lands to third parties in violation of different agreements. Fake Documents were used during the process.
Ansal API’s directors have been charged with criminal activities and land grabbed by Uttar Pradesh authorities. Almost 2,268 complaints have been filed with RERA against the management, the complainants accused them of illegal land sales and not paying ₹400 crore in dues and over 7000 investors are worried about their investments.
The UP govt had selected APIL for developing a high-tech township spanning 1,765 acres, as per govt order dated May 21, 2005. The project’s Detailed Project Report was approved on May 22, 2006. Subsequent expansions increased the project size to 3,530 acres in 2009 and further to 6,465 acres in 2015. The last approved layout plans were valid until March 13, 2017. He also stated that the company has outstanding refund claims worth ₹235 crore, out of which only ₹118 crore has been paid so far.
On February, 2025, the National Company Law Tribunal (NCLT) initiated bankruptcy proceedings against Ansal API when IL&FS Financial Services claimed that the listed Ansal API had failed to honor loans of ₹257 crore. It also claimed that Ansal API had entered into a settlement with it in 2022 but was not able to meet the terms of that settlement.
“The Corporate Debtor does not dispute the existence of the debt but challenges the exact amount, suggesting that the debt owed is ₹83 crores rather than the claimed ₹257.43 crores. However, this dispute over quantum does not affect the application’s admissibility at this stage,” NCLT noted in its ruling.
NCLT appointed Naveneet Kumar Gupta as the Interim Resolution Professional (IRP), and the court directed the police authorities to let him take full control of Ansal API’s assets and documents without any delay.
Financial Overview
It posted a revenue of Rs. 227 crores in September 2024, up by 108% from its same quarter of the previous year’s revenue of ₹109 crores, accompanied by a net loss of ₹284 Crores and ₹29 Crores in September 2024 and September, 2023 respectively
About the Company
Ansal API is an Indian real estate and infrastructure development company. It currently operates in a range of business verticals such as Integrated Townships, Condominiums, Group Housing, Malls, Shopping Complex, Hotels, SEZs, IT Parks and Infrastructure and Utility Services.
So far, the Company has completed 66 projects in India and 5 projects in Iraq, with an aggregate contract value of Rs.197.11 crores and Rs.86.50 crores respectively.
Written by Satyajeet Mukherjee
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