NCLT rejects Authum Investment’s resolution plan for Vas Infrastructure

The National Company Law Tribunal (NCLT), Mumbai Bench, has rejected the resolution plan submitted by Authum Investment and Infrastructure Ltd for the acquisition of Vas Infrastructure Ltd (VIL), which was undergoing the Corporate Insolvency Resolution Process (CIRP).

In a regulatory filing on Saturday, Authum Investment said the NCLT, through its order dated July 7, 2026, rejected the resolution plan under which the company had emerged as the successful Resolution Applicant.

Authum had informed stock exchanges on April 2, 2025, that it had emerged as the successful Resolution Applicant for acquiring Vas Infrastructure following the insolvency proceedings initiated against the company.

The insolvency proceedings against Vas Infrastructure were initiated after the NCLT admitted a petition filed by Canara Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC). The tribunal admitted the petition after establishing the existence of financial debt and default in repayment of loans by the company.

Canara Bank had approached the NCLT over a default of ₹301.06 crore by Vas Infrastructure in repayment of financial debt arising from various loan facilities. The bank had claimed that the default occurred on August 31, 2022.

The loans included working capital facilities and term loans extended to Vas Infrastructure for its real estate projects, including the Pushp Vinod projects in Mumbai. The facilities were classified as non-performing assets (NPAs) in August 2015.

Separately, the Bombay High Court, in a judgment delivered on June 22, 2026, ruled that the pendency of CIRP against Vas Infrastructure cannot prevent authorities from deciding applications for deemed conveyance under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA).

The case was filed by Darshan Mandir Co-operative Housing Society, which had challenged an order rejecting its application for deemed conveyance of land and building on the grounds that CIRP proceedings were pending against Vas Infrastructure.

The High Court noted that Vas Infrastructure was not the original developer of the property but had subsequently acquired rights over the adjoining properties. The court observed that the obligation to convey the land and building to flat purchasers was originally upon the promoter under Section 11 of MOFA.

The court held that Section 14 of the IBC, which imposes a moratorium during insolvency proceedings, does not prevent a competent authority from exercising statutory powers under MOFA. It observed that deemed conveyance proceedings are not recovery proceedings or enforcement of monetary claims but a statutory mechanism to perfect title in favour of flat purchasers.

The Bombay High Court further held that allowing insolvency proceedings to indefinitely delay deemed conveyance would defeat the purpose of MOFA, particularly in cities such as Mumbai where redevelopment of ageing buildings often requires societies to have clear title over land.

The court set aside the September 2025 order of the Competent Authority, restored the housing society’s application for deemed conveyance, and directed that it be decided on merits.

Meanwhile, following the latest NCLT order rejecting Authum’s resolution plan, the acquisition process will not proceed under the proposed plan. Authum clarified that the development would have no impact on its business operations.

“On account of the aforesaid rejection of the resolution plan, there is no impact on the business operations of the Company,” Authum said in its exchange filing.

The company added that any further developments in the matter would be communicated to stock exchanges within the timelines prescribed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Also see: Authum Investment & Infrastructure emerges successful bidder for Vas Infrastructure