The National Company Law Tribunal (NCLT) has directed IndusInd International Holdings (IIHL) to deposit Rs 2,750 crore in an escrow account within 48 hours as part of Reliance Capital’s resolution plan. The tribunal also clarified that the interest on the money in the escrow account will belong to the Committee of Creditors. IIHL was also asked to disclose the term sheet for Rs 7,300 crore fundraising through debt to the Monitoring Committee.
The Administrator of Reliance Capital has accused IndusInd International Holdings Ltd (IIHL) of failing to meet conditions set by the NCLT in its July 23 order. IIHL was supposed to deposit Rs 2,750 crore in designated escrow accounts but instead deposited the money in its own accounts and those of its promoters. The NCLT hearing on IIHL’s plea is scheduled for next week.
India’s once most valuable startup, Byju’s, has been struggling financially and facing delays in salary payments. The National Company Law Tribunal (NCLT) has ordered the company to pay salaries regardless of access to funds raised through a rights issue, threatening an audit by ICAI if they fail to comply. The delay is attributed to funds being tied up in escrow and lawsuits from vendors.
Ed-tech giant Byju’s, founded by Byju Raveendran, has been struggling financially, leading to the founder’s removal from the Forbes Billionaires list and a reduction of his net worth to zero. Previously valued at $22 billion, Byju’s valuation has plummeted to $1 billion. To support employees, Raveendran mortgaged his house to pay salaries. NCLT has directed Byju’s to maintain the status quo regarding an ongoing rights issue. A group of investors, including Prosus and General Atlantic, approached NCLT over the issue. The company claims to have received commitment for a USD 200 million rights issue but has not raised the full amount.
The National Company Law Tribunal (NCLT) has initiated the corporate insolvency resolution process (CIRP) against the ATS Knightsbridge project in Noida’s Sector 124. The move comes after the builder, ATS, allegedly defaulted on payments of Rs 285 crore and Rs 47 crore to its lenders. The NCLT has appointed an interim resolution professional to oversee the CIRP process and ensure that the project continues without disruption.
The Bengaluru bench of the National Company Law Tribunal (NCLT) has imposed a cost of ₹20,000 on edtech giant Byju’s for delaying its response to a petition filed by Surfer Technologies. The petition initiated an insolvency process against Byju’s due to an unpaid debt of ₹2.3 crore. The matter has been adjourned for further hearing on May 1.
In a major development, the National Company Law Tribunal (NCLT) has ordered insolvency proceedings against media baron Subhash Chandra in response to a plea filed by Indiabulls Housing Finance. Simultaneously, debt-ridden telecommunications provider Vodafone Idea has successfully raised Rs 18,000 crore through India’s largest follow-on offering (FPO), with strong participation from institutional investors.
The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL) Chairman Emeritus Subhash Chandra in response to a petition submitted by Indiabulls Housing Finance. The decision was made based on Chandra’s status as a guarantor for a loan given to the Essel Group company Vivek Infracon Ltd. However, petitions from IDBI Trusteeship and Axis Bank were dismissed by the NCLT.
