UP RERA de-registers two Ansal API projects at Sushant Golf City

What the Record Shows

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA), acting under Section 7 of the Real Estate (Regulation and Development) Act, 2016, de-registered two Ansal API projects at the Sushant Golf City township in Lucknow — "Ansal API, Pocket-2, Sector-P" and "Ansal API, Pocket-2, Sector-J". The orders record, in the authority's own words, "severe financial irregularities" and the "diversion and siphoning of funds" collected for those pockets. Reporting of the orders put the sums linked to the two projects at around Rs 606 crore. A Section 7 de-registration is the strongest step in the regulator's toolkit: it withdraws the promoter's right to market or sell in the project and shifts control of the pending work and the buyers' remedies to the authority.

Separately, UP RERA imposed a penalty of about Rs 14.41 crore on Ansal API for executing 329 sale deeds in unregistered pockets of Sushant Golf City between 26 March 2022 and 14 August 2024, which the authority held to breach Section 3 of the RERA Act, the bar on marketing or selling a real-estate project without registration. UP RERA has also directed the promoter to complete the remaining work and upload the completion certificate for Pocket-3, Sector-A.

The regulatory action runs alongside insolvency. The National Company Law Tribunal, New Delhi Bench, Court-IV, by order dated 25 February 2025, admitted Ansal Properties and Infrastructure Ltd to the corporate insolvency resolution process (CIRP) on a Section 7 application under the Insolvency and Bankruptcy Code filed by IL&FS Financial Services Ltd (IFIN) over defaults on term loans, appointing an interim resolution professional and imposing a moratorium. The IRP's claim list as on 11 March 2025, published on ibbi.gov.in, shows homebuyers of the township filing as unsecured financial creditors in a class.

UP RERA has additionally clarified its earlier directive on the Sushant Golf City Hi-Tech Township, confirming there is no restriction on registering allocations in pockets that have already obtained completion certificates, so buyers in delivered phases are not affected by the de-registration of the two incomplete pockets.

How It Worked

Under the RERA framework each pocket of a large township is registered as a distinct project, and the money a buyer pays is meant to fund construction of that specific project. UP RERA's Section 7 orders record that funds collected for the affected Sushant Golf City pockets were not applied to their construction, leaving development incomplete; the phrase "diversion and siphoning of funds" is the authority's own recorded finding, not a characterisation added here.

The penalty order describes a second strand of conduct. UP RERA found that 329 sale deeds were executed in pockets of Sushant Golf City that had not been registered with the authority, over roughly two and a half years to August 2024. Registering a sale deed for land that has not itself been registered as a RERA project defeats the disclosure and escrow protections the statute is built on, and UP RERA treated it as a Section 3 violation attracting the Rs 14.41 crore penalty.

The insolvency strand has a different origin. Per the NCLT order dated 25 February 2025, IL&FS Financial Services had advanced two term loans and Ansal API defaulted; IFIN's Section 7 application put the default at Rs 257.43 crore, a figure the company disputed while admitting that dues were outstanding. Once the tribunal was satisfied that a debt and a default above the Rs 1 crore threshold existed, it admitted the company to CIRP and the moratorium froze recovery actions against it. Homebuyers, who under the IBC are treated as financial creditors, then began filing claims through the resolution professional, which is how the class of township buyers came to appear on the claim list hosted on ibbi.gov.in.

Who Lost Money

Those most directly affected are the homebuyers of Sushant Golf City who paid for units in the pockets where UP RERA recorded incomplete work. The IRP's claim list shows them filing as unsecured financial creditors in a class; the individual names, amounts and contact details on that list are the personal data of private buyers and are not reproduced here, so only the aggregate position is described.

What buyers have actually recovered so far is little. The moratorium that follows a CIRP admission halts individual recovery, and distributions to creditors come only at the end of a resolution or liquidation, typically for a fraction of the amount claimed and after a long wait. On the lender side, IL&FS Financial Services asserted a default of Rs 257.43 crore that triggered the insolvency; that too is a claim to be adjudicated in the process rather than a sum recovered.

Because the de-registered pockets remain unfinished, the loss for buyers there is measured less in a cash figure than in undelivered homes and blocked savings. UP RERA's clarification that completed pockets with completion certificates face no registration bar is important precisely because it stops the action from spilling over onto buyers in phases that were, in fact, delivered.

Where It Stands Now

The insolvency has moved since it began. In Company Appeal (AT) (Insolvency) Nos. 500 and 502 of 2025 — filed by a group of Sushant Golf City homebuyers led by Gagan Tandon and by suspended director Pranav Ansal respectively — the National Company Law Appellate Tribunal, by order dated 7 January 2026, upheld the NCLT's admission of the Section 7 application, holding that the corporate debtor had admitted the debt and that the default exceeded the statutory threshold. The tribunal directed that the mode and manner of a project-wise resolution or "reverse CIRP" mechanism, intended to protect homebuyers of individual projects, be worked out by the adjudicating authority. That project-wise position is the current status, and it post-dates the earlier record.

UP RERA's de-registration and penalty orders remain the operative regulatory position, and the authority has itself pursued appellate remedies over aspects of the insolvency to protect buyers' interests. A regulator's finding of irregularity and a tribunal's admission of insolvency are civil and regulatory determinations; they are not a criminal conviction of any individual. A de-registration order, a penalty and an insolvency admission contain findings and allegations tested to a civil standard; no person named in these proceedings has been convicted of an offence, the presumption of innocence continues, and due process is ongoing.

What It Means

Section 7 de-registration is meant to be a shield, not just a sanction: once a promoter loses the project, the authority can bring in the mechanisms — completion by other means, ring-fenced accounts, reverse CIRP within insolvency — that give stranded buyers a route to their homes. For anyone tracking such a matter, the practical lesson is that regulatory and insolvency tracks run in parallel and at different speeds, and a buyer usually has to engage with both: the RERA authority for project completion and the resolution professional for a formal claim.

The protective takeaway is verification before commitment. Every RERA authority publishes a searchable register; UP RERA's is on up-rera.in, where a buyer can confirm whether a specific pocket or tower is registered, read its quarterly progress reports and check the promoter's declared timelines before paying. If a project or phase does not appear on the register, that absence is itself the warning. Readers weighing a property purchase against other options can model the trade-offs with Oquilia's real-estate ROI calculator, and can follow related regulatory actions through the enforcement archive and reports such as RBI's licence cancellations of co-operative banks.

FAQ

Does this mean the people named are guilty?

No. UP RERA's de-registration and penalty orders and the NCLT's insolvency admission contain findings and allegations tested to a civil and regulatory standard, not findings of criminal guilt. No individual named in these proceedings has been convicted of an offence; the presumption of innocence continues and due process is ongoing.

What exactly did UP RERA order?

Per the authority's Section 7 orders, UP RERA de-registered two Ansal API pockets at Sushant Golf City, Lucknow, recording "severe financial irregularities" and "diversion and siphoning of funds" for those projects. It separately imposed a penalty of about Rs 14.41 crore for 329 sale deeds executed in unregistered pockets, held to breach Section 3 of the RERA Act.

Is Ansal API under insolvency?

Yes. The NCLT, New Delhi Bench, Court-IV admitted Ansal Properties and Infrastructure Ltd to CIRP on 25 February 2025 on a Section 7 application by IL&FS Financial Services. On 7 January 2026 the NCLAT upheld that admission and directed that a project-wise resolution mechanism be worked out.

Have homebuyers got their money back?

Not yet. Homebuyers have filed claims as unsecured financial creditors in a class before the resolution professional. A moratorium halts individual recovery, and any distribution comes only at the end of a resolution or liquidation, usually for a fraction of the amount claimed and after a long wait.

How do I check whether a project is registered with RERA?

Every state authority runs a public register. For Uttar Pradesh, up-rera.in lets a buyer search by project or promoter, view the registration status of a specific pocket or tower, and read its quarterly progress reports. A project or phase that does not appear on the register is not registered, and that is itself a warning sign.

Where can I read the official record?

The insolvency admission and the appellate order are on the record of the NCLT and NCLAT, and the resolution professional's claim list is published on ibbi.gov.in. The NCLAT order dated 7 January 2026 upholding the admission is reproduced on Indian Kanoon.

This report is based on the NCLAT order dated 7 January 2026 in the Ansal Properties and Infrastructure Ltd insolvency and the resolution professional's claim list published on ibbi.gov.in, reviewed on 30 July 2026.