NCLT asks ED to free up borrower’s attached assets

3 Sep
NCLT asks ED to free up borrower’s attached assets

The National Company Law Tribunal (NCLT) has asked the Enforcement Directorate (ED) to free up attached properties that were linked to fraud but not mortgaged to its lenders in case of REI Agro Limited.

The property worth of Rs. 100 crore of REI Agro Limited had been attached by ED for alleged money laundering case. The company could not repay bank loans and classified as Non Performing Asset (NPA) since 2013. 

“The liquidator must get possession of those properties attached by the ED, Delhi,” said Madan Gosavi, member judge from NCLT Kolkata. 

“It is for this Tribunal to decide how the properties and assets of the corporate debtor under liquidation can be appropriated” he added.

Surendra Joshi, an operational creditor has filed an application at NCLT, Kolkata Bench in February 2017. The company has an outstanding loan of Rs. 5200 crore.

Anil Goel was appointed as Interim Resolution Professional by NCLT, which was later on appointed as liquidator by Tribunal with no feasible Resolution Plan in sight, about a year ago.

“The latest order should help move hundreds of stuck cases, which are yet to show any value for lenders despite the dedicated bankruptcy court’s order for liquidation,” said Anil Goel Liquidator of REI Agro.

“There are several cases where government agencies or regulatory bodies like SEBI have attached assets of companies citing alleged frauds. Those cases could now see the light of day,” Goel added.