The Committee of Creditors of Indu Projects Limited, currently undergoing insolvency proceedings at the NCLT’s Hyderabad Bench, has approved a resolution plan submitted by Earthin Projects Limited.
The majority decision of the CoC has been placed before the NCLT for approval. SBI and IDBI have voting rights of 26 per cent and 20 per cent respectively in the CoC.
Earthin Projects Limited, with its resolution plan of ₹619 crore, became the highest bidder and offered to pay ₹501 crore upfront to the CoC within 90 days from the approval of the resolution plan by the NCLT-Hyderabad. It also offered to provide fixed deposits in lieu of ₹78-crore bank guarantees of the ongoing projects of Indu Projects and infuse ₹40 crore towards working capital to ensure the company remains a going concern.
The NCLT case is under consideration of Anantha Padmanabha Swamy, Member Judicial and Binod Kumar Siinha, Member Technical.
Hyderabad-based infrastructure and real estate company Indu Projects, which was already undergoing financial crisis, had to face cases moved by the CBI and ED filed against its promoter I Shyam Prasad Reddy in connection with Andhra Pradesh Chief Minister YS Jagan Mohan Reddy’s quid pro quo cases. Following a petition moved by bankers, insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 were initiated as the company owed ₹4,350 crore to various bankers and creditors.
An earlier round of the insolvency process, now being facilitated by Anoop Kumar Singh, Resolution Professional, failed with the CoC rejecting the bids and the company almost heading for liquidation. The NCLT extended the CIRP process and the matter has been put forth before the NCLT for seeking its approval.
Earthin Projects, based in Srikalahasti in Chittoor, Andhra Pradesh, is promoted by Alturi Ravi Mohan Reddy and Madhu Babu Lakkamaneni. It is learnt to be basing its bid and backing from a London-based investment company.