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Investors challenge insolvency resolution given by NCLT in DSK case
Investors have challenged the insolvency resolution given by National Company Law Tribunal (NCLT) in the DSK case and asked for a review, stating that they are not happy with the ₹827 crore plan
Investors have challenged the insolvency resolution given by National Company Law Tribunal (NCLT) in the DSK case and asked for a review, stating that they are not happy with the ₹827 crore plan.
Speaking to Hindustan Times, Amol Rakiv member of Chaitanya Vatika group (group of 1,100 investors allegedly duped by DS Kulkarni) said, “Many investors challenged this ₹827 crore plan given by NCLT as they are not confident about the procedure followed during the process. Now, NCLT will hear matter in detail and will give its verdict.’
Rakiv further said that, many investors have filed an Intervention Application (IA),hence, the plan was not sanctioned. The total liability was ₹2,300 crore and the plan accepted is of ₹827 crore. If this is the situation, then what will be the amount given to depositors?
Earlier, the Committee of Creditors (CoC) approved the resolution plan submitted by Ashdan Properties Pvt Ltd, Classic Promoters & Builders Pvt Ltd and Atul Builders, with a requisite majority of the voting share as per the Insolvency and Bankruptcy Code (IBC), 2016.
In September 2019, the NCLT Mumbai bench, ordered the commencement of corporate insolvency resolution process (CIRP) related to the real estate group under the provisions of the Insolvency and Bankruptcy Code, 2016, on an application filed by Bank of Maharashtra.
The DSK couple was booked for cheating and criminal breach of trust at Shivajinagar police station following complaints from investors. The Kulkarnis were booked under Sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust) and 34 (common intention) of the Indian Penal Code (IPC) and Sections 3 and 4 of Maharashtra Protection of Interest of Depositors (MPID) Act.
