BENGALURU:
Senior advocate MS Shyam Sundar told the National Company Law Tribunal on Monday that IndiaBulls Housing Finance Limited (IBHF) had indulged in evergreening of loan and fabricating of documents. Appearing for Mantri Developers Pvt Ltd, against which IBHF had filed an insolvency application, the senior advocate filed an application for drawing up of cognizance for criminal offences against IBHF.
IBHF had extended a loan of Rs.475 crore to Mantri Developers in 2016. Alleging that Mantri had failed to repay the loan, IBHF filed the insolvency application under Section 7 of the Insolvency and Bankruptcy Code (IBC) on February 13, 2022. When the matter came up for hearing before the National Company Law Tribunal on Monday, Shyam Sundar pointed out that IBHF’s application shows that a board resolution was passed on February 11, 2022 to initiate the proceedings. But on the said date the parties were still discussing a settlement.
On the following day, February 12, 2022, a Resolution Professional allegedly gave consent to initiate the proceedings and the proceedings were initiated on February 13, 2022 with the filing of the IBC petition. “This kind of single day and short succession proceedings is clearly doubtful,” Shyam Sundar argued before the Tribunal.
FABRICATED DOCUMENT
Alleging a fraud, Shyam Sundar pointed out that along with the IBC petition which was filed on 13.2.2022, IBHF has filed a resolution professional’s affidavit which is dated 22.5.2022. The stamp paper was also dated 22.5.2022 “which is clearly a future dated affidavit and future dated stamp paper,” he argued.
Moving an application for taking cognizance of criminal offence, he stated that “How Indiabulls got a stamp paper and resolution professional’s affidavit on a future date and dared to place it before the court on 13.2.2022 itself. This is indicative of a possible foul play,” he told the NCLT, Bengaluru Bench of Justice T Krishna Valli and Technical Member Manoj Kumar Dubey.
EVERGREENING
The advocate also alleged that IBHF had extended the loan to Mantri Developers to clear an earlier loan of its sister concern Indiabulls Commercial Credit Limited. “This is an act of evergreening which is prohibited by RBI and finance laws,” the Tribunal was told. The NCLT will continue hearing the case on Tuesday.
