Rs 167-cr Nakoda assets go under the hammer; e-auction set for July 28

Nakoda Limited, a company currently undergoing liquidation, has announced an e-auction for the sale of its assets, either as a “Going Concern” or on a “Standalone Basis.” The auction is scheduled for July 28, 2025, from 12:00 Noon to 01:00 PM. The sale will be conducted on an “AS IS WHERE IS BASIS, AS IS WHAT IS BASIS, WHATEVER THERE IS BASIS AND NO RECOURSE BASIS” via the e-auction service provider EBKRAY through its website, baanknet.com.

This sale is being carried out under the provisions of the Insolvency and Bankruptcy Code, 2016, and its associated regulations. Interested bidders will have the opportunity to acquire the company’s assets as a consolidated unit, preserving its business operations, or as individual assets.

For the option of acquiring Nakoda Limited as a “Going Concern,” the total reserve price has been set at Rs 167 crore. The Earnest Money Deposit (EMD) required for this option is Rs 8.35 crore.

The breakdown of assets available under the “Going Concern” option, along with their respective reserve prices in crores, is as follows:

Option A: Sale as a “Going Concern”

(Primary option; cancels standalone options if successful)

• Asset Description: Entire Corporate Debtor (Nakoda Ltd) including all assets & liabilities except Cash/Bank Balance.
• Reserve Price: ₹16,712.36 Lakhs (≈₹167.12 Crores)
• EMD: ₹835.62 Lakhs
• Bid Increment: ₹20 Lakhs
• Auction Timing: 28 July 2025 (12:00 PM – 1:00 PM)

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Options A1–A4: Standalone Assets

(Only if Option A fails)
Auction Timing: 28 July 2025 (1:00 PM – 2:00 PM)

Asset	Description	Reserve Price (₹ Lakhs)	EMD (₹ Lakhs)	Bid Increment (₹ Lakhs)
A1	Surat Plant (Phase-1): Land (33,303 sq. m) + Building + Plant & Machinery	5,285.87	264.29	10
A2	Surat Plant (Yarn Manufacturing): Land (18,550.05 sq. m) + Building + Machinery	7,612.87	380.64	15
A3	Surat Plant (Chips Manufacturing): Land (11,534.39 sq. m) + Building + Machinery	3,802.47	190.12	10
A4	Flat in Surat	11.15

This e-auction represents a significant step in the liquidation process of Nakoda Limited, aiming to recover dues for its creditors and provide a potential opportunity for new investors to acquire established assets.

Background

Insolvency proceedings against Nakoda Limited was initiated following an application filed by Canara Bank, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC).

• Admission of CIRP: The NCLT, Ahmedabad Division Bench, admitted the application on July 12, 2021.
• Interim Resolution Professional (IRP): Mr. Vikas Prakash Gupta was appointed as the Interim Resolution Professional (IRP).
• Public Announcement & Claims: Pursuant to Regulation 6 of the IBBI (CIRP) Regulations, 2016, the IRP issued a Public Announcement to invite claims from creditors, which was published on July 16 and 17, 2021, in newspapers. Claims were subsequently received from Financial Creditors and Operational Creditors.
• Committee of Creditors (CoC) Formation: The Committee of Creditors (CoC) was constituted on August 5, 2021, with Financial Creditors, and its constitution was filed with the Adjudicating Authority on the same day.
• First CoC Meeting & Asset Assessment: The first CoC meeting was held on August 13, 2021. During this meeting, the IRP apprised the CoC of the status of Nakoda Limited’s assets after visiting its various locations:
  • Plant at Surat: Not operational since 2014, with missing machinery parts and no power, labor, or security. Records prior to 2016 were seized by CBI.
  • Windmills at Tirunelveli: Nine windmills were not operational, and no maintenance had been carried out since 2017.
  • Properties at Lonavala and Surat: Two vacant bungalows in Lonavala and one flat in Surat were in poor condition with maintenance issues, seepage, and rodent problems.
  • Vehicles at Surat: Two vehicles (Mercedes Benz and Corolla) were not in working condition.
  • Records: No Fixed Asset Register was found, and data/files prior to 2017 were seized by CBI.
  • Litigations & Attachments: Numerous litigations were pending against the Corporate Debtor, including under the Prevention of Money Laundering Act (PMLA), and properties were attached by authorities like the Enforcement Directorate (ED) and Income Tax Department.
  • Revival Estimate: A suspended director estimated that an investment of Rs 100 crore would be needed to restart and revive the plant.
• Decision for Liquidation: Given the deteriorated condition of the plant (closed since 2013), the significant outstanding debt, and the huge value depletion, the CoC, with a 90.2% voting share, resolved to liquidate the Corporate Debtor in its first meeting on August 13, 2021. Representatives from Canara Bank and Axis Bank concurred that the chances for revival were very low.
• Liquidator Appointment & Costs: In the second CoC meeting, members approved the appointment of Mr. Ravindra Kumar Goyal as the Liquidator with a 70.23% vote. The CoC also agreed that if there was any shortfall in liquidation costs over liquid assets, financial creditors, being financial institutions, would contribute proportionally. The CoC resolved that the Liquidator should first explore selling the Corporate Debtor as a going concern.
• Liquidation Order: The NCLT allowed the application for liquidation of Nakoda Limited, with the liquidation effective from the date of the order, February 8, 2023. Mr. Ravindra Goyal was officially appointed as the Liquidator.

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