Vatika Limited had raised ₹146 crore through secured non-convertible debentures in 2017, backed by project-linked securities including land, receivables and escrow arrangements.
Despite extensions granted for repayment of principal till June 30, 2024, the company defaulted on interest payments beginning March 2022.
A demand notice dated December 29, 2023 sought ₹29.72 crore towards outstanding interest, following which IDBI Trusteeship Services Limited initiated insolvency proceedings claiming over ₹274 crore in default.
The NCLT admitted the Section 7 application and initiated CIRP against the entire company, which was challenged before the NCLAT by the suspended director of Vatika, Surender Singh.