NCLT admits insolvency pleas against four subsidiaries of Rana Kapoor -linked RAB Enterprises

The National Company Law Tribunal (NCLT) New Delhi Bench has admitted four separate petitions for the initiation of Corporate Insolvency Resolution Process (CIRP) against companies wholly owned by RAB Enterprises (India) Private Limited, a firm promoted by former Yes Bank co-founder Rana Kapoor and his wife, Bindu Kapoor. The order, delivered on April 7, 2026, targets four specific entities: Imagine Habitat Pvt. Ltd., Imagine Residence Pvt. Ltd., Imagine Home Pvt. Ltd., and Imagine Estate Pvt. Ltd.

Link to the Kapoor Family

The Corporate Debtors are wholly owned subsidiaries of RAB Enterprises, which the NCLT noted was promoted by the RAB Promoters, namely Mr. Rana Kapoor and Ms. Bindu Kapoor. The legal proceedings stemmed from financial facilities originally sanctioned by Samman Capital Limited (formerly Indiabulls Housing Finance) and its subsidiary to the RAB Group. The Tribunal highlighted that the repayment ability of the Kapoors was “materially affected” following criminal investigations initiated by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) into their activities.

The Debt and Default

The petitions were moved by JC Flowers Asset Reconstruction Pvt. Ltd., acting as the assignee of the original loans. The core of the dispute involved:

• Principal Borrower: Bliss House Private Limited.
• Guarantee Mechanism: While the Imagine group entities were not the primary borrowers in all instances, they acted as “obligors” and “hypothecators” under a Deed of Hypothecation dated March 22, 2019.
• Amount at Stake: In one instance (IB-30/ND/2026), the petitioner alleged a default in repayment of approximately ₹258.74 crore.
• Arbitral Award: The debt was previously crystallized via an Arbitral Award on February 28, 2023, which directed the group to pay roughly ₹196.87 crore plus interest.

NCLT Ruling and Management Change

The Corporate Debtors argued that a Deed of Hypothecation did not make them “Corporate Guarantors”. However, the NCLT rejected this, ruling that the nomenclature of a document is not decisive and that the entities had unequivocally undertaken an obligation to discharge the debt.

Key outcomes of the order include:

• Moratorium Declared: A moratorium under Section 14 of the IBC is now in place, prohibiting the transfer or disposal of any assets by these companies.
• Interim Resolution Professional (IRP): The Bench appointed Ms. Mamta Binani as the IRP to take immediate charge of the management and assets of all four Corporate Debtors.
• Group CIRP Potential: While the IRP will initially conduct separate processes for each firm, the Committee of Creditors (CoC) may later decide to pursue a consolidated “group CIRP”.

The Tribunal further clarified that the ongoing challenge to the Arbitral Award in the High Court does not bar these insolvency proceedings, as the IBC has an overriding effect over other laws.

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