A subsidiary of IndBarath Power has been pushed into liquidation by its financial creditors after they were unable to agree on a bid for one of the stressed power projects of the company.
Axis Bank, Power Finance CorporationNSE -1.99 % and Rural Electrification CorporationNSE -2.38 % bickered over a bid by Alliance Projects as well as an offer to settle dues that was made by the company’s Hyderabad-based promoters, as per details in an order passed by the National Company Law Tribunal that ET has reviewed. The NCLT passed orders for appointment of Dutch advisory firm BDO’s Ashish Rathi as official liquidator for the arm’s assets.
The arm owns a 660 megawatt power project in the Tuticorin district of Tamil Nadu that is built over nearly 600 acres. The best bid for the stressed project was pegged at Rs 300 crore.
“The order shall deemed to be a notice of discharge to the officers, employees and workmen of the corporate debtor, except when the business of the corporate debtor is continued during the liquidation process by the liquidator”, the order passed by the NCLT’s Hyderabad bench stated.
