The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that a foreign company cannot acquire or be assigned a security interest over immovable property in India without the Reserve Bank of India’s permission.
Holding that no such approval had been obtained in the present case, the tribunal ruled that Mauritius-based Tropical Ventures Company Ltd. could not claim security rights over the assets of Incab Industries Ltd.
A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra also upheld Tropical’s classification as a related party of Incab Industries Ltd. It confined Tropical’s admissible claim to ₹85.79 crore.
The tribunal observed, “The law thus prohibits a company registered or incorporated…