MakeMyTrip Travel Services Private Ltd, a 100 percent subsidiary of Indian online travel company MakeMyTrip, has applied for liquidation under the Insolvency and Bankruptcy Code (IBC).
Officials in the know told Business Standard that the subsidiary, which had plans to operate non-scheduled flights, was being wound up as it had failed to take off. MakeMyTrip set up this entity in 2014 and it does not have any major liability, added the officials. Emails sent to the official liquidator and MakeMyTrip went unanswered.
In the recent past, a number of companies has filed for voluntary liquidation to shut their subsidiaries. Recently, two multinational firms — Gucci and Daiichi Sankyo — decided to send their Indian subsidiaries for liquidation under the IBC. Gucci had intended to operate Gucci India Private Ltd as a wholly-owned subsidiary in the country.
The subsidiary, however, will now be wound up because the global luxury brand has got into local partnerships and started operating in India. Daiichi, on the other hand, has decided to centralise its research and development set-up, prompting the winding-up of its Indian subsidiary.
Other multinational firms that have applied for liquidation are Indian subsidiaries of IL&FS and HSBC.
Axiom Managed Solutions, a global firm rendering legal solutions, also filed for liquidation to wind up its India business.
Since the rules for voluntary liquidation were notified, more than 40 companies have filed for it. Experts say the process of winding up has become easier for companies now. Earlier, a high court would appoint an official liquidator, and that made the process cumbersome.
Source: Business-Standard 