The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted a plea of Yes Bank to initiate bankruptcy proceedings against real estate developer Radius Infra Holdings for the failure of group firms to repay about ₹700 crore of term loans advanced by the private lender. Bhrugesh Amin has been named the Interim Resolution Professional (IRP) of the company by the tribunal.
The realty firm, as the corporate guarantor for loans raised by its operating group companies, owes nearly ₹700 crore to the bank. Radius Infra Holdings had guaranteed repayment of loans sanctioned to E-Commerce Magnum Solution and Raghuleela Builders by creating a pledge over shares.
The bank had sanctioned a term loan of ₹500 crore in favour of E-Commerce Magnum Solution and, of this, had disbursed ₹283 crore. It sanctioned and disbursed loans of ₹300 crore in favour of Raghuleela Builders. However, both the companies have continuously failed in the payment of the interest accrued on the sanctioned amounts, besides failing to pay the principal components of the respective advances. The amounts defaulted by E-Commerce Magnum and Raghuleela are over ₹322 crore and ₹377 crore, respectively.
The NCLT Mumbai bench has held that the bench finds that it is a fit case for admitting the petition filed by the financial creditor, Yes Bank, against the corporate debtor, who is a corporate guarantor. “The corporate guarantor is co-extensively liable as of the corporate debtor for the dues payable to the financial creditor,” said the bench led by Kishore Vemulapalli Rajesh Sharma.
