MUMBAI: The clock has started ticking for Jyoti Structures, the first of the 12 large defaulters against which banks have proceeded under the under the Insolvency and Bankruptcy Code following directions from the Reserve Bank of India. The National Company Law Tribunal (NCLT) on Tuesday admitted bankruptcy proceedings against the Mumbai-based company, a move which could result in either new owners or liquidation.
Jyoti Structures Ltd (JSL), a company originally promoted by VP Valecha of the Valecha Group and Bhopal-based Mirchandani Group, makes power transmission towers and other equipment which it sells to state-owned companies. JSL has defaulted to banks on loans worth Rs 7,000 crore. The bankruptcy law requires that if an ac…
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