A court ordered insolvency proceedings for Tirumalla Agro Industries, a unit of India’s Kute Group, deepening the legal troubles facing the conglomerate whose founders are in jail over allegations they siphoned INR 2,467 crore from a cooperative lender.
The National Company Law Tribunal in Mumbai admitted the bankruptcy petition filed by creditor Aryatech Platforms against Tirumalla Agro on Oct. 9, citing an unpaid debt of INR 1.12 crore. The order appoints an interim resolution professional to oversee the company and freezes legal action against it while creditors seek to recover their money.
The decision comes as federal…