Sterling SEZ case: NCLT gives an earful to bankers who want to withdraw bankrupcty proceedings, orders their personal presence

Mumbai: The National Company Law Tribunal (NCLT) on Thursday took a very serious note of the failure of bankers, who want to withdraw bankruptcy proceedings against Sterling SEZ & Infrastructure, in taking note of the fraudulent activities of its promoters and ordered to be personally and explain their case Friday. A two-member bench of the Mumbai NCLT comprising Bhaskara Pantula Mohan and V Nallasenapathy also accused the bankers of misleading the tribunal by seeking to withdraw the bankruptcy petition earlier. The tribunal which had earlier allowed their petition for the same had stayed it later and Thursday ordered a detailed enquiry into the entire decision of the members of the committee of creditors’ decision to vote for a one-time settlement that the absconding promoters of the company who owe Rs 8,100 crore to them.

“The bankers should have informed this bench about all the frauds conducted by Sterling Biotech founders, who are also the promoters of Sterling SEZ & Infrastructure,” the tribunal said and asked the CoC members to file their reply by Friday itself and be personally present.

The Sterling Group, run by Nitin and Chetan Sandesara, owes over Rs 15,600 crore to banks as its flagship Sterling Biotech is also under bankruptcy and after defaulting Rs 7,500crore of bank loans. [caption id=“attachment_4407987” align=“alignleft” width=“380”]  Representational image. News18.[/caption] The tribunal also warned of punitive actions against the CoC members if they failed to be present at the next hearing on Friday. It can be recalled that the Mumbai bench had on April 10 allowed the bankers plea to withdraw the bankruptcy proceedings against Sterling SEZ after the defaulting promoters offered a one-time settlement. However, on April 12 the tribunal stayed the bankruptcy proceedings on Sterling SEZ after a plea by the ministry of corporate affairs as the promoters are absconding. Nitin and Chetan Sandesara are absconding and are believed to be abroad and are facing a Delhi court trail to declare them fugitive economic offenders.