ReutersEmbassy Group’s bid for mining firm Tiffins Barytes Asbestos and Paints has been blocked at the National Company Law Appellate Tribunal (NCLAT) by one of the latter’s shareholders.
Embassy, a Bengaluru-based realtor, has offered Rs 100 crore to buy the insolvent mining firm that owns an iron ore mine next to JSW Steel’s plant at Bellary in Karnataka. The iron ore reserves of the mine were valued at Rs 2,884 crore by the Karnataka government in 2015.
Embassy’s offer had been approved by the company’s committee of creditors that included JSW Steel and Udhyaman Investments, a related party of Embassy Group as per its latest available records with the Ministry of Corporate Affairs (MCA). According to court filings reviewed by ET, Ravi Shankar Vedam, a medical doctor who is a major shareholder of the mining firm, has claimed that JSW Steel and Udhyaman Investments were not financial creditors of the company and their inclusion in this category had influenced the insolvency proceeding in favour of Embassy.
He has claimed that Tiffins Barytes Asbestos and Paints’ directors were suspended for MCA violations between 2016 and 2021. As the board was suspended, he claimed that the company undertook transactions without board approvals.
In this scenario, it is only possible to ascertain who the company’s actual financial creditors are through a forensic audit, Vedam said and asked for Embassy’s bid to be put on hold.
His petition was filed on March 7. After the petition is registered, it will come up for hearing as per the procedure.
Embassy, a Bengaluru-based realtor, has offered Rs 100 crore to buy the insolvent mining firm that owns an iron ore mine next to JSW Steel’s plant at Bellary in Karnataka. The iron ore reserves of the mine were valued at Rs 2,884 crore by the Karnataka government in 2015.
Embassy’s offer had been approved by the company’s committee of creditors that included JSW Steel and Udhyaman Investments, a related party of Embassy Group as per its latest available records with the Ministry of Corporate Affairs (MCA). According to court filings reviewed by ET, Ravi Shankar Vedam, a medical doctor who is a major shareholder of the mining firm, has claimed that JSW Steel and Udhyaman Investments were not financial creditors of the company and their inclusion in this category had influenced the insolvency proceeding in favour of Embassy.
He has claimed that Tiffins Barytes Asbestos and Paints’ directors were suspended for MCA violations between 2016 and 2021. As the board was suspended, he claimed that the company undertook transactions without board approvals.
In this scenario, it is only possible to ascertain who the company’s actual financial creditors are through a forensic audit, Vedam said and asked for Embassy’s bid to be put on hold.
His petition was filed on March 7. After the petition is registered, it will come up for hearing as per the procedure.
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