Rs 44-crore assets of Rajat Wires to be auctioned on July 3

The assets of Rajat Wires Private Limited, currently under liquidation, will go under the hammer through an e-auction scheduled for July 3, 2025. The sale is being conducted under Section 35(f) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 33 of the IBBI’s Liquidation Process Regulations.

The auction, to be held from 4 PM to 6 PM on a “as is where is”, “as is what is”, “whatever there is” and “no recourse” basis, will include industrial land, buildings, plant and machinery, and a BMW vehicle belonging to the company.

Key Assets on Sale Include:

• Faridabad Property: Land and building at Plot No. 262 J, Sector-24, Faridabad, Haryana, with a plot area of 8,268.36 sqm.
  • Reserve Price: ₹43.96 crore
  • EMD: ₹4.39 crore
  • Bid Increment: ₹5 lakh
• Faridabad Plant & Machinery: Located on the same premises.
  • Reserve Price: ₹67.8 lakh
  • EMD: ₹6.78 lakh
  • Bid Increment: ₹50,000
• Taloja Property (Maharashtra): Land and building at Plot No. L74, MIDC Industrial Area, Taloja, Raigarh, with a 3,983 sqm plot area.
  • Reserve Price: ₹10.88 crore
  • EMD: ₹1.08 crore
  • Bid Increment: ₹50,000
• Taloja Plant & Machinery:
  • Reserve Price: ₹1.79 crore
  • EMD: ₹17.97 lakh
  • Bid Increment: ₹5 lakh
• BMW Car (Diesel, 2011 Model):
  • Reserve Price: ₹5.10 lakh
  • EMD: ₹51,000
  • Bid Increment: ₹5,000

The last date for submission of the Earnest Money Deposit (EMD) is July 2, 2025, by 5 PM. The inspection window for the assets is open from June 21 to June 28, between 10 AM and 5 PM.

Interested bidders must register at https://ibbi.baanknet.com, and submit the bid application form along with required documents by 5 PM on June 30. The complete auction process documents and terms are also available on the website.

Prospective bidders must also submit an undertaking of eligibility under Section 29A of the IBC. Sudhir Kalra, the liquidator for Rajat Wires, can be contacted at liquidator.rwpl@gmail.com or +91 88005 10511 for further details.

Background

The New Delhi Bench of the National Company Law Tribunal (NCLT), Court-III, on 12 February 2025 ordered the liquidation of Rajat Wires Private Limited, following an application filed by the Resolution Professional, Gulshan Gaba.

The Corporate Insolvency Resolution Process (CIRP) for Rajat Wires Private Limited commenced on February 14, 2020, with the appointment of Kanti Mohan Rustagi as the Interim Resolution Professional. A public announcement was made on February 19, 2020.

The Committee of Creditors (CoC) was subsequently constituted, comprising Canara Bank and Sunita Sachdev, although Sunita Sachdev was not made part of the CoC due to her relation to the Suspended Board of Directors. The CoC, in its second meeting on July 22, 2020, appointed registered valuers to determine the liquidation and fair value of the corporate debtor’s assets, which include properties in New Delhi, Faridabad, and Taloja Industrial Estate. The CoC also approved criteria for prospective resolution applicants and invited expressions of interest (EOI) through Form G. Mr. Gulshan Gaba was appointed as the Resolution Professional on July 29, 2020.

Despite multiple attempts to solicit resolution plans, including re-publishing Form G, the efforts proved unsuccessful. Several expressions of interest were received, but all were deemed invalid due to reasons such as non-receipt of earnest money deposit or failure to meet the eligibility criteria related to net worth and group affiliation.

In the eighth CoC meeting, a resolution plan was received from M/s. Garg Builders, but it was found to be below expectations and the prospective resolution applicant was advised to revise the bid. In the subsequent ninth CoC meeting, the revised plan was again deemed unsatisfactory.

Finally, in the tenth CoC meeting held on March 30, 2021, the CoC, holding 100% voting share, decided to vote against the submitted resolution plan and proceed with the liquidation of the Corporate Debtor, deeming the plan not viable. The CoC concluded that liquidation was in the best interest of all stakeholders in the absence of a viable resolution plan.

The NCLT, in its order, affirmed the commercial wisdom of the CoC, stating that it is non-justiciable and that the CoC’s decision, supported by a 100% majority, to liquidate the Corporate Debtor, satisfies the requirements of Section 33(2) of the IBC. The average liquidation value for the Corporate Debtor has been calculated as INR 25,19,60,483, based on the valuations provided by registered valuers.

The NCLT has appointed Sudhir Kalra (IBBI/IPA-001/IP-P00768/2017-2018/11314) as the Liquidator of Rajat Wires Private Limited. Mr. Gulshan Gaba, the Resolution Professional, has been relieved from his assignment and directed to hand over all relevant documents and control of the Corporate Debtor to the newly appointed Liquidator. The Liquidator’s fees will be in proportion to the value of the liquidation estate, as specified by IBBI.

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