SU Toll Road of Reliance Infrastructure to undergo insolvency proceedings

In a significant move that highlights the ongoing challenges in India’s infrastructure sector, the National Company Law Tribunal (NCLT) in Mumbai has admitted an insolvency plea against SU Toll Road Private Limited, a company linked to Reliance Infrastructure. The order, pronounced on August 18, 2025, marks the start of a Corporate Insolvency Resolution Process (CIRP) for the company.

The case was brought forward by the State Bank of India (SBI), which leads a consortium of lenders including Phoenix ARC, Punjab National Bank, and Bank of Baroda. According to SBI’s petition, SU Toll Road, a special purpose vehicle (SPV) created to manage a section of National Highway 68 in Tamil Nadu, had defaulted on a significant loan. The bank claimed a default amount of over Rs 358 crores, with the total outstanding debt of the consortium amounting to a staggering Rs 739.72 crores. The company’s loan accounts were officially classified as Non-Performing Assets (NPAs) back on August 30, 2023.

SU Toll Road, in its defense, presented a two-pronged argument to the tribunal. It cited ongoing debt restructuring talks with the lenders and highlighted its active arbitration proceedings to recover substantial sums from the National Highways Authority of India (NHAI). The company also pointed out that it had already serviced a significant portion of its debt, having repaid Rs 712.14 crore.

However, the NCLT was not swayed by these arguments. In a ruling that reinforces the strict application of insolvency laws, the tribunal stated that once a debt and a default are clearly established, it has no discretionary power to dismiss or defer an insolvency petition. The NCLT’s decision effectively greenlights the CIRP, putting the fate of SU Toll Road Private Limited in the hands of an appointed Interim Resolution Professional (IRP) and beginning a new chapter for the company.

SU Toll Road Private Limited was incorporated on March 24, 2007. The Company was awarded, on a Build-Operate-Transfer (BOT) basis, the project for strengthening the existing carriageway from Km 0.313 to Km 136.670 on the Salem–Ulundurpet section of National Highway 68 (NH-68) in Tamil Nadu. The project also involved widening the stretch to four lanes, along with its improvement, operation, and maintenance.

The concession agreement for the project was executed with the National Highways Authority of India (NHAI) on July 19, 2007, for a period of 25 years, effective from January 15, 2008, which was designated as the appointed date under Clause 1.1 of the agreement.

SU Toll Road Private Limited is a wholly owned subsidiary of Reliance Infrastructure Limited. At the end of the concession period, the entire facility will be transferred back to NHAI.

Also See: NCLAT stays insolvency proceedings against Reliance Infrastructure