The National Company Law Tribunal (NCLT), Bengaluru Bench, has declared Naseer Ahmed, Member of the Karnataka Legislative Council from the Congress, as “bankrupt” under the Insolvency and Bankruptcy Code (IBC) for failing to repay ₹1,454 crore outstanding loan amount of his erstwhile company M/s Scotts Garments Limited, Bengaluru, now liquidated.
The declaration of Mr. Naseer as a ‘bankrupt’ now leads to his disqualification from the post of MLC under both Section 140 of the IBC and Article 191(1)(c) of the Constitution of India, which disqualifies a MLA or MLC if he is an “undischarged insolvent”.
Incidentally, Mr. Naseer was removed from the post of political secretary (to the then Chief Minister Siddaramaiah) amid…