Sterling RP moves NCLT for possession of assets

The ED had attached properties worth over ₹ 4,700 crore belonging to the two Sandesara group companies in June 2018, following a complaint of fraud by Andhra Bank. Vishal Jain, interim resolution professional (IRP) for the two companies, has now informed the Mumbai bench of the National Company Law Tribunal (NCLT) that it would be impossible to proceed with the corporate insolvency resolution process (CIRP) without possession of those assets.

Srei Infrastructure Finance Ltd has filed an insolvency petition against both companies for defaults totalling over ₹ 297 crore. Before that, on 10 June, Sterling Biotech, the listed parent of the two companies, was also admitted by the NCLT Mumbai for insolvency resolution for defaulting on more than ₹ 5,400 crore.

The ED is investigating charges of fraud made by Andhra Bank against the company. The lender has alleged that Sterling had taken loans of over ₹ 5,000 crore from various lenders in a fraudulent manner, which later became non-performing loans. NextMAds

Presenting Garg in court, the agency had said it had come across “certain entries” in a diary seized by the income tax department in 2011 which showed various cash payments amounting to ₹ 1.52 crore made to one “Mr Garg, director, Andhra Bank” by the Sandesara brothers between 2008 and 2009.