The State Financial institution of India (SBI), which put out a discover declaring the alleged conman Sanjay Prakash Rai alias Sanjay Sherpuriya and his spouse Kanchan “wilful defaulters” on Thursday, declared his agency Kandla Vitality and Chemical substances Ltd (KECL) a Non-Performing Asset (NPA) on July 22, 2014. The agency owed Rs 125.95 crore to the financial institution on the time.
The general public discover was issued by the SBI’s Harassed Property Administration Department in Ahmedabad, following an order by the Nationwide Firm Legislation Tribunal (NCLT) Ahmedabad Bench on an software filed by the SBI in opposition to KECL on August 8, 2021, underneath Part 7 of the Insolvency and Chapter Code (IBC) 2016. The SBI public discover – that carried images of the couple – claimed the agency’s dues to SBI had been over Rs, 349.12 crore, as on December 31, 2022.
Rai was arrested on Wednesday from Lucknow over alleged fraud value crores utilizing cast paperwork with a false reference to the Prime Minister’s Workplace.
As per an order of the NCLT dated October 21, 2022, the appliance of the SBI was admitted and the financial institution was allowed to provoke the Company Insolvency Redressal Course of (CIRP) with the agency and declare a moratorium underneath Part 14 of the IBC.
The agency – a producer, provider, and exporter of hydrocarbon fluids – “has been shut down for a few years and there’s no scope for the revival of the plant”, the NCLT order stated. The SBI had submitted to the NCLT that Rai’s agency had made “a number of one-time settlement affords to the consortium the place the monetary creditor is a member. Nevertheless, the affords issued by the company debtor (KECL) being very low have been rejected by the consortium”.
Registered underneath the Firms Act 1956, the agency was established on March 7, 2005, with its workplace at “11, Second Flooring, Shri Krishna Centre, Nr. Mithakhali Six Street, Navrangpura, Ahmedabad, Gujarat”. On Friday, when The Indian Specific visited the workplace of KECL at this web site, it was sealed with a discover citing the NCLT order pasted outdoors.
The authorised share capital of the restricted firm, as cited within the NCLT order is Rs 35 crore, and the paid-up share capital of the corporate is Rs 26 crore.
The Ministry of Company Affairs web site exhibits the director of KECL as Sanjay Rai, Kanchan Rai (his spouse), and Arun Karwa, who served because the director between March 2012 and Might 2015.The SBI had granted monetary help of Rs 171.85 crore to the agency as on January 22, 2013, and as a result of non-payment of the debt, KECL was categorised as NPA on July 22, 2014.
An unique software was filed by the financial institution earlier than Debt Restoration Tribunal, Ahmedabad on October 21, 2015, for a complete quantity of declare of Rs.125.95 crore. A discover on this regard was issued to the agency on November 2, 2015, underneath Part 13 (2) of the SARFAESI Act, 2002 asking to pay Rs. 376.58 crore.
As per the order, whereas the case was pending within the debt restoration tribunal, the corporate proposed a one-time settlement on December 1, 2016, and April 12, 2017.
As per the order, this was the appliance made by the financial institution in 2021, in NCLT underneath the “interval of limitation”. The company debtor once more got here up with a one-time settlement proposal on June 28, 2017, with an quantity of Rs. 71 crore, and as soon as on September 22, 2017, with an quantity of Rs. 80 crore. The settlement was made legitimate until June 8, 2018. Nevertheless, a request to increase the validity of the settlement was requested by the corporate which was rejected by the financial institution.
Rai’s agency, on the time of the NCLT order, was in default of whole Rs 291.18 crores until April 24, 2014.Nimai Gautam Shah was appointed as Insolvency Decision Skilled (IRP) for KECL. Shah was unavailable for touch upon Friday.
