Latest news with #CIRP
Time of India
6 hours ago
- Business
- Time of India
Lodha Developers to deposit ₹520 crore as security in legal case against V Hotels
NEW DELHI: Lodha Developers Ltd has been directed to deposit Rs 520.80 crore as security in relation to an ongoing case in the Supreme Court against V Hotels Ltd, which the company acquired last year through an insolvency process. In a regulatory filing on Wednesday, Lodha Developers Ltd informed that this matter is related to proceedings initiated by the Enforcement Directorate (ED) against the erstwhile promoter of V Hotels Ltd (VHL) . This was in relation to a transaction of Rs 520.80 crore, allegedly routed through VHL before the start of the insolvency process. Lodha expects that the matter will be heard expeditiously in the apex court and the deposit will be released. In April last year, Lodha Developers Ltd announced the takeover of VHL through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016. In the filing, the company said it acquired VHL in 2024 and paid the consideration to various creditors based on the approved resolution plan. The approval of the resolution plan was also upheld by the Supreme Court vide its order dated September 29, 2024. "This intimation is related to proceedings initiated by the Enforcement Directorate against the erstwhile promoter of VHL - Kerkar family in relation to their transactions in Cox & Kings group to the tune of Rs 520.80 crore, allegedly routed through VHL before the commencement of CIRP," Lodha Developers said. The matter was heard by the Bombay High Court, and it was held that the proceedings cannot be continued against VHL since the issue relates to actions of the erstwhile promoters prior to the commencement of CIRP. "The appeal against this order was heard by the Supreme Court, and it has been decided that Lodha Developers will deposit a sum of Rs 520.80 crore as security since this is the maximum claim in the matter. Upon this deposit, there is no other claim on VHL's properties or other assets. We expect the matter to be expeditiously heard and the deposit to be released in due course," the filing said. In April last year, Lodha Developers had said VHL has real estate assets which can be developed for residential and allied uses. "Under the said resolution plan, the company will pay Rs 900 crore in tranches over a period of 270 days," the company had said. Lodha Developers, erstwhile Mactotech Developers Ltd, is one of the leading real estate firms in the country. It has a strong presence in the Mumbai Metropolitan Region (MMR) and Bengaluru markets.
&w=3840&q=100)
Business Standard
10 hours ago
- Business
- Business Standard
SBI marks Reliance Com loan as 'fraud', reports Anil Ambani to RBI
Reliance Communications has disclosed to the exchanges that the country's largest lender, State Bank of India (SBI), has decided to classify its loan account as 'fraud' due to irregularities in the conduct of the account. It has also decided to report both the account and Anil Dhirajlal Ambani, who was a director at the company, to the Reserve Bank of India (RBI) in accordance with the central bank's guidelines. 'We have taken cognisance of the responses (wherever received) to our SCN (show-cause notice) and after due examination of the same it is concluded that sufficient reasons have not been provided by the respondent to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of Reliance Communications to the satisfaction of the bank,' SBI said in a letter to Reliance Communications on June 23, which the company received on June 30. The company, however, clarified that the classification of 'fraud' by SBI is not expected to have any impact on its operations. It is also seeking legal advice on the way forward with respect to this development. The company, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP) and has a resolution plan approved by its Committee of Creditors—currently awaiting approval from the National Company Law Tribunal (NCLT)—said the credit facilities referred to by the bank pertain to the period prior to the CIRP. As per the Insolvency and Bankruptcy Code (IBC), such claims are required to be resolved as part of the resolution plan or during liquidation, as the case may be, it said. Meanwhile, Anil Ambani's lawyers, responding to SBI's notice classifying Reliance Communications' account as fraud, said the bank had not responded to Ambani's communication challenging the validity of the SCN for almost a year, and had also not granted him a personal hearing to make submissions against the allegations. Additionally, they stated that the bank had withdrawn SCNs issued to other non-executive and independent directors of the company, but had not done so for Ambani despite his being a non-executive director not involved in the day-to-day affairs of the company. The account was declared a non-performing asset (NPA) by the bank in August 2016. Following this, in October 2020, the bank had identified the account as 'fraud' and reported the name of the borrowing entity and its promoters, directors and guarantors to the RBI. However, this classification was challenged in court and subsequently reversed. The bank later reinitiated the process of fraud identification and served SCNs to the borrower and its promoters, directors and suspended directors in December 2023. In March 2024, SBI sent the forensic audit report to the promoters, directors and suspended directors, offering them an opportunity to make submissions, if any. Meanwhile, Anish Nanavaty, resolution professional (RP) of Reliance Communications, responding to the bank's SCN on behalf of the corporate debtor in January 2024, said the bank could pursue any action against the erstwhile management, employees and personnel of the corporate debtor for any fraudulent action committed prior to the cutoff date. Anil Ambani also responded to the bank's SCNs in January and March 2024, seeking documents and materials relied upon by the bank. In May 2024, Ambani, in his response, challenged the validity of the forensic audit report. According to the bank, Reliance Communications, RITL and RTL received Rs 31,580 crore from banks, of which 44 per cent was used for loan repayments and 41 per cent for payments to connected parties. 'Utilisation of funds obtained from banks was traced and its utilisation was mapped from the sanction letter. Instances were identified where utilisation of loan amount was not as per terms mentioned in the sanction letter,' the bank said. Additionally, there was potential rerouting of bank loan funds and internal transfer of funds among Reliance Communications, RITL and RTL. Further, large portions of the loan proceeds were invested in fixed deposits and mutual funds, among other instruments. Reliance Communications was admitted into CIRP in 2019. Lenders submitted claims amounting to around Rs 49,000 crore. Once among the largest telecom players in the country, Reliance Communications was the flagship firm of the Reliance Group.
&w=3840&q=100)
Business Standard
11 hours ago
- Business
- Business Standard
Lodha Developers to deposit ₹520 cr as security in case against VHL
Lodha Developers Ltd has been directed to deposit ₹520.80 crore as security in relation to an ongoing case in the Supreme Court against V Hotels Ltd, which the company acquired last year through an insolvency process. In a regulatory filing on Wednesday, Lodha Developers Ltd informed that this matter is related to proceedings initiated by the Enforcement Directorate (ED) against the erstwhile promoter of V Hotels Ltd (VHL). This was in relation to a transaction of ₹520.80 crore, allegedly routed through VHL before the start of the insolvency process. Lodha expects that the matter will be heard expeditiously in the apex court and the deposit will be released. In April last year, Lodha Developers Ltd announced the takeover of VHL through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016. In the filing, the company said it acquired VHL in 2024 and paid the consideration to various creditors based on the approved resolution plan. The approval of the resolution plan was also upheld by the Supreme Court vide its order dated September 29, 2024. "This intimation is related to proceedings initiated by the Enforcement Directorate against the erstwhile promoter of VHL - Kerkar family in relation to their transactions in Cox & Kings group to the tune of ₹520.80 crore, allegedly routed through VHL before the commencement of CIRP," Lodha Developers said. The matter was heard by the Bombay High Court, and it was held that the proceedings cannot be continued against VHL since the issue relates to actions of the erstwhile promoters prior to the commencement of CIRP. "The appeal against this order was heard by the Supreme Court, and it has been decided that Lodha Developers will deposit a sum of ₹520.80 crore as security since this is the maximum claim in the matter. Upon this deposit, there is no other claim on VHL's properties or other assets. We expect the matter to be expeditiously heard and the deposit to be released in due course," the filing said. In April last year, Lodha Developers had said VHL has real estate assets which can be developed for residential and allied uses. "Under the said resolution plan, the company will pay ₹900 crore in tranches over a period of 270 days," the company had said. Lodha Developers, erstwhile Mactotech Developers Ltd, is one of the leading real estate firms in the country. It has a strong presence in the Mumbai Metropolitan Region (MMR) and Bengaluru markets.
India Today
17 hours ago
- Business
- India Today
SBI classifies Reliance Communications loan account as ‘fraud'
Reliance Communications on Tuesday said that the State Bank of India (SBI) has classified its loan account as 'fraud' and plans to report the company and its former director, Anil Ambani, to the Reserve Bank of India (RBI).In a stock exchange filing, the company stated that SBI has taken the decision in connection with credit facilities dating back to August 2016. Reliance Communications is currently undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) and has a resolution plan awaiting final approval by the National Company Law Tribunal (NCLT).advertisementAccording to a report by CNBC-TV18, SBI had sent show-cause notices to the company in December 2023, March 2024, and September 2024. After reviewing the company's responses, the bank concluded that Reliance Communications failed to adequately explain non-compliance with the terms and conditions of its loans and the irregularities in the conduct of its Fraud Identification Committee subsequently resolved to classify the account as fraud and initiate the process of informing the RBI, including naming Anil Ambani in accordance with regulatory requirements to report key managerial personnel associated with such its response, Reliance Communications said the loans referenced by SBI pertain to the period prior to the initiation of its Corporate Insolvency Resolution Process (CIRP) in 2019. The company argued that under Section 32A of the IBC, once the resolution plan is approved, it is to be granted immunity from liabilities relating to offences committed before CIRP facilities are necessarily required to be resolved under the resolution plan or liquidation, and the company is currently protected from proceedings under IBC," Reliance Communications said, adding that it is seeking legal advice on the is not the first time a bank has flagged Reliance Communications' account. In November 2024, Canara Bank also classified the account as fraud, but the Bombay High Court stayed that decision in February 2025, citing a failure to follow RBI guidelines on giving the borrower a hearing.- Ends
&w=3840&q=100)
Business Standard
19 hours ago
- Business
- Business Standard
SBI flags Reliance Comms loan as fraud; Anil Ambani's name sent to RBI
The State Bank of India (SBI) has classified the loan account of Reliance Communications Ltd (RCOM) as 'fraud', and is initiating action to report the name of Anil Dhirubhai Ambani, the company's erstwhile director, to the Reserve Bank of India (RBI), RCOM said in a regulatory filing on Tuesday. 'Fraud Identification Committee of the Bank has decided to classify the loan account of Reliance Communication Limited as Fraud,' SBI stated in the letter dated June 23, 2025, enclosed with the filing. The letter, received on June 30, cites various irregularities, including potential fund diversion through related entities, including Reliance Telecom Ltd (RTL) and other group companies, and violations of loan terms that led to the fraud classification. SBI mentioned that the decision follows an examination of multiple show cause notices and forensic audits. The bank noted that it is proceeding to report both the loan account and Anil Ambani's name to the RBI, in line with the RBI's Master Directions and Circulars. Canara Bank in November 2024 had also classified the account of Reliance Communications as 'fraud', a decision that was stayed by Bombay High Court earlier this year. Fraud claims predate Reliance Comms' insolvency This action is in connection with credit facilities availed by Reliance Communications before the commencement of its corporate insolvency resolution process (CIRP) in June 2019. Since then, the company's affairs have been managed by Resolution Professional Anish Niranjan Nanavaty, under the supervision of the National Company Law Tribunal (NCLT), Mumbai Bench, which is currently reviewing an approved resolution plan. Shielded from 'adverse effect' under IBC: RCOM Reliance Communications said the company is under corporate insolvency resolution process (CIRP) from 2019. A resolution plan has been approved by creditors and awaits final approval by the National Company Law Tribunal (NCLT). The credit facilities or loans referred to in the SBI communication, dated June 23, 2025, relate to the period preceding the commencement of the CIRP, it said. Under the Insolvency and Bankruptcy Code (IBC), these must be addressed through either an approved resolution plan or liquidation, the company said. During the CIRP period, the company is protected from the institution, continuation of any suits, proceedings against the company, Reliance Communications mentioned. In accordance with the immunity provisions under Section 32A of the IBC, upon the approval of the resolution plan by the NCLT, the company is to have immunity against any liability for any purported offences committed prior to the commencement of the CIRP, it said. In light of the recent development, the company is seeking legal advice to assess its next steps.
