The National Company Law Tribunal (NCLT) has ordered a former director of Barracks Retail India Pvt. Ltd. to repay over ₹50.36 lakh along with 12% annual interest, after finding prima facie evidence of alleged fraudulent diversion of rental income during insolvency proceedings. The ruling has also triggered a referral to the Insolvency and Bankruptcy Board of India (IBBI) for further disciplinary and legal action.
The case emerged from insolvency proceedings initiated under the Insolvency and Bankruptcy Code, 2016, where the Resolution Professional raised allegations of asset concealment and unauthorized financial transactions by the suspended management. The financial creditor, ASREC (India) Ltd., later pursued the matter following…