Debt

Debt Financing

NCLAT quashes CoC constitution of Value Infratech, asks NCLT to remove RP

Business Line  

The insolvency appellate body National Company Law Appellate Tribunal (NCLAT) quashed the constitution of the Committee of Creditors (CoC) of Value Infratech India and removed the Resolution Professional (RP) with a direction to IBBI to conduct an investigation and take appropriate action. The NCLAT has also directed that the claims of various financial creditors including home buyers should be fixed against Value Infratech India for its project Skywalk RNE. It has also remanded the matter back to the National Company Law Tribunal (NCLT). Earlier, the Delhi bench of the NCLT directed for liquidation of realty firm Value Infratech India, which was developing project Skywalk RNE This was challenged by 25 homebuyers of Skywalk RNE who alleged that Capri Global Capital, a financial creditor, was given the undue advantage of a much higher voting share than was permissible, in the constitution of the CoC in the insolvency process. It was also alleged that the RP has shown undue favour to Capri Global Capital by adding up all the loans provided by it to its subsidiaries also.