While the bank provided a personal hearing, it found the arguments in the reply to be “not sustainable” against specific allegations such as “mis-utilization of funds, improper loan utilization, unauthorized transfers,” and “fund recycling”.
RCOM’s disclosure notes that the company is protected from legal proceedings under the Insolvency and Bankruptcy Code, 2016, during its CIRP. It also states that if the resolution plan is approved by the National Company Law Tribunal (NCLT), the company will have immunity against any liability for offenses committed prior to the CIRP commencement. The company’s affairs, business, and assets are currently managed by a Resolution Professional named Anish Niranjan Nanavaty.
The total outstanding credit…