NCLT bars Gammon’s Abhijit Rajan from leaving India
NCLT will hear the Gammon India case next on 28 January and has directed key managerial persons and directors to be present in court
The Mumbai bench of the National Company Law Tribunal (NCLT) has asked Abhijit Rajan, promoter and non-executive chairman of infrastructure construction firm Gammon India Ltd, and four other directors of the company not to leave the country without obtaining the permission of the authorities concerned.
The other four directors of the Mumbai-based company are executive director Anurag Choudhary and non-executive directors Urvashi Saxena, Naval Choudhary and Atul Kumar Shukla.
“On the last occasion, on 27 September, it was intimated from the side of debtor company (Gammon India) that there was a possibility of settlement. Hence, the time was granted to explore the possibility and to avail the benefit of any scheme of RBI,” said M.K. Shrawat, judicial member of NCLT Mumbai in his order on 3 January.
“However, except for placing the proposal of 17 November, nothing is on record from the side of the debtor company. It has also been informed that some criminal proceedings have been initiated against the directors,” said the order.
The Union Bank of India (UBI) has dragged Gammon India to the insolvency court alleging a default of more than ₹375 crore. BSE-listed Gammon India owes around ₹7,000 crore to lenders, including UBI. The firm incurred a consolidated net loss of ₹1,153.77 crore on net sales of ₹1,667.62 crore, according to its FY17 results.
The tribunal also said it has given promoters a last chance to produce “any material in their defence”, failing which “the matter shall be proceeded on merit”. The tribunal will next hear the case on 28 January and has directed key managerial persons and directors to be present.
Gammon’s troubles began after February 2018 when the RBI put an end to the restructuring of loans outside bankruptcy courts and set tight deadlines for firms slipping into default. It said cases involving more than ₹2,000 crore have to be settled in 180 days, failing which they have to be taken to bankruptcy courts.
An email query to Gammon remained unanswered till press time. Nishit Dhruva, managing partner of law firm MDP and Partners, and Prakash Shinde, partner of MDP and Partners, which is representing the bank, confirmed the development but refused to divulge details as the matter is subjudice.
- Tesla to cut workforce by 7%, sees smaller profit in Q4
- Wipro spins out govt business as separate segment
- Vibrant Gujarat meet: Ambani, Adani, Birla, others line up big investments
- Wipro announces 1:3 bonus; Q3 net profit rises 30%
- RIL to invest Rs 3 lakh crore in Gujarat in next 10 years : Mukesh Ambani
Editor's Picks »
- Delhi HC sets aside arbitral award in favour of Reliance subsidiary over Airport Express metro line
- UP govt approves 10% quota for the poor
- Govt again rejects allegations of wrongdoings in Rafale deal, says wait for CAG report
- Pandemics could cause $570 billion annual loss to global economy: WEF report
- Govt sanctions new squadrons of Dornier aircraft to boost coastal surveillance
- What to expect from Q3 results of IndiGo, SpiceJet, Jet Airways
- Forget privatisation, govt has hugged its banks tighter
- Flat profit, rising debt are growing worries for Reliance
- Q3 results: HUL growth off a high base shows it’s on a roll
- DCB Bank Q3 results: Small loans give big pain as farm, mortgages lift delinquencies