A sprawling 641-acre power plant site in Tuticorin, Tamil Nadu, is set to go under the hammer on 29 June 2026, as the liquidation proceedings of Ind-Barath Power (Madras) Limited enter a decisive phase. The company, which was ordered into liquidation by the NCLT Hyderabad Bench on 22 April 2019, has been working through its assets under the Insolvency and Bankruptcy Code, 2016, for over seven years.

The asset on the block is no small parcel. Spread primarily across Sasthavinallur and Pallakuruchi villages in the Sattankulam and Tiruchendur talukas of Thoothukkudi district, the lot includes not just the land but the entire infrastructure sitting on it — buildings, plant, and machinery. The liquidator, Ashish Arjunkumar Rathi, has set a reserve price of ₹59,73,59,382, roughly ₹59.74 crore, with a bid increment of ₹50 lakh per step. Prospective buyers will need to bring an Earnest Money Deposit of just under ₹6 crore to the table.

The auction will be conducted entirely online through the IBBI-designated BAANKNET platform and is scheduled to run from 11 AM to 6 PM on auction day, with an unlimited auto-extension of five minutes each time a bid comes in during the final stretch — meaning serious competitive bidding could push the session well past its scheduled close.

Those interested have until 26 June 2026 to submit both their eligibility documents and their EMD through the portal. A site inspection window is open from 29 May through 26 June for buyers wishing to conduct physical due diligence. Crucially, all bidders must also submit a signed undertaking confirming they are not disqualified under Section 29A of the IBC — and any bidder found ineligible at any stage risks forfeiture of their deposit.

The sale, as is standard in IBC liquidations, comes with no warranties, no representations, and no recourse — strictly on an “as is where is, whatever there is” basis. The liquidator reserves the right to accept or reject any bid without assigning reasons, and the notice itself creates no binding obligation on either side to complete the transaction.

Ind-Barath Power (Madras) Limited was incorporated in Tamil Nadu in 2009 as part of the Ind-Barath group, which operated thermal power assets across southern India. The Tuticorin plant was its principal physical asset. With this auction, the liquidation estate moves toward resolution after years of proceedings. For queries, interested parties may reach the liquidation office at liquidationibpml@gmail.com or call +91-7506356748 / +91-9702482690.

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India’s major public sector banks (PSBs) have doubled down on the Insolvency and Bankruptcy Code (IBC) and the National Company Law Tribunal (NCLT) framework to resolve years of accumulated bad debt, with FY 2025-26 annual reports revealing a sweeping and coordinated recovery effort that has materially transformed the asset quality of the country’s banking system. Across PSU banks reviewed — State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India, Indian Bank, and UCO Bank — gross non-performing asset (NPA) ratios have fallen to multi-year lows, bolstered by structured NCLT referrals, Corporate Insolvency Resolution Processes (CIRP), and parallel mechanisms including SARFAESI enforcement, Lok Adalats, One-Time Settlements (OTS), and sales to the National Asset Reconstruction Company Limited (NARCL).

SBI: The Behemoth’s Battle With Bad Loans

State Bank of India, the country’s largest lender, has perhaps the most striking story to tell. A bank that once carried over ₹1,26,389 crore in gross NPAs in FY 2021 has brought that number down to a gross NPA ratio of just 1.49% by March 2026 — an improvement of 33 basis points year-on-year — while net NPA has fallen to a slender 0.39%.
At the heart of this transformation is a dedicated Stressed Assets Resolution Group (SARG), a specialised unit that monitors NCLT proceedings with laser focus. As of 31st March 2026, SBI had referred 1,247 cases (on a whole-bank basis) to the NCLT, of which 1,006 cases were admitted. Of the admitted cases, resolution plans were approved for 293 cases and liquidation was ordered in 549 cases.
Beyond the tribunals, SBI assigned 355 accounts with a principal outstanding of ₹5,204.95 crore to various Asset Reconstruction Companies (ARCs) and Permitted Transferees during FY 2025-26, realising a total sale consideration of ₹2,071.16 crore — comprising ₹1,315.37 crore in cash and ₹755.79 crore in security receipts. A portfolio-basis transfer covered 267 accounts worth ₹688.93 crore, assigned to ARCs at ₹214.70 crore on a 100% cash basis.
SBI’s Provision Coverage Ratio (PCR) stood at a robust 74.36% excluding AUCA and 99.01% including AUCA as of March 2026 — testament to how fully provided-for the remaining stressed book has become.

Punjab National Bank: NCLT Cell and ₹1,868 Crore in CIRP Recoveries

Punjab National Bank (PNB) has institutionalised its approach to insolvency proceedings through a dedicated NCLT and Liquidation Cell, set up specifically to deal with restructuring, resolution, and recovery in NCLT cases. The cell actively engages with liquidators and ensures regular follow-up on cases that have remained stuck for extended periods.

The results are measurable. During FY 2025-26, PNB recovered ₹1,868 crore from NPA accounts under the Corporate Insolvency Resolution Process (CIRP). Total cash recovery for the year stood at ₹11,990 crore, with recovery in written-off accounts and recorded interest adding another ₹7,740 crore. PNB’s gross NPA ratio has tumbled from 8.74% in FY 2023 to 2.95% as of March 2026 — a decline of 100 basis points year-on-year alone — while net NPA has dropped to 0.29%. The Provision Coverage Ratio (including Technical Write-Offs) firmed up to 97.14%.
The bank has also structured its field-level recovery machinery to complement NCLT proceedings: Retail and MSME Branches handle NPAs up to ₹20 lakh, Asset Recovery Management Branches (ARMB) cover accounts up to ₹25 crore, and Stressed Asset Management (SAM) Branches oversee all accounts above ₹25 crore, including all NCLT-admitted accounts.

Canara Bank: 378 Cases, ₹29,584 Crore at Stake
Canara Bank disclosed one of the most granular breakdowns of its IBC exposure among the banks reviewed. As of 31st March 2025, 378 cases had been referred to the NCLT under the IBC, with a book liability exposure of approximately ₹29,584 crore. Of these, 339 cases were admitted by the NCLT with an aggregate admitted claim of ₹27,931 crore.

During FY 2025-26, Canara Bank recovered ₹1,599 crore through NCLT-referred cases (through resolution and liquidation). The bank’s total recovery and upgradation for the year stood at ₹9,161 crore, while recovery specifically from written-off accounts reached ₹7,642 crore.

Canara’s Gross NPA ratio improved by 110 basis points year-on-year to 1.84% and Net NPA declined 27 basis points to 0.43% as of March 2026. The Provision Coverage Ratio improved 151 basis points to 94.21%. The annualised slippage ratio was contained at just 0.69%.

Indian Bank: IBC as Pillar of Resolution, ₹1,062 Crore from NCLT

Indian Bank’s annual report positions the IBC as a central pillar of its resolution architecture. Alongside traditional SARFAESI enforcement, Lok Adalats, and compromise settlements, the bank has embraced the Pre-Packaged Insolvency Resolution Process (PIRP) — a faster, less adversarial pathway under the IBC designed especially for MSMEs — and coordinates actively with NARCL for large-ticket stressed assets.
During FY 2025-26, Indian Bank made a recovery of ₹1,062 crore from NCLT-admitted accounts, while an amount of ₹2,508 crore was recovered from Bad Debts Written-Off accounts (AUC). Under SARFAESI, 5,941 properties with a combined reserve price of ₹6,381.16 crore were brought for auction during the year, with 1,292 properties successfully sold for ₹918.83 crore.

Bank of Baroda: Specialised Branches, Digital Monitoring
Bank of Baroda has built a dedicated operational spine to handle its IBC and NCLT caseload. At the apex sits a Stressed Assets Management Vertical at the corporate office, supported by five Stressed Assets Management (SAM) Branches with specialist skill sets catering exclusively to all NCLT accounts. Below them sit 12 Stressed Assets Recovery Branches (SARBs) at the zonal level and 69 Regional Stressed Assets Recovery Branches (ROSARBs) at the region level.
The bank has also digitalised its monitoring infrastructure end-to-end, deploying a 360-degree live monitoring platform that tracks SARFAESI and NCLT status, provisioning levels, and daily recovery figures for every NPA account in its books — all without manual intervention.
BoB’s asset quality improved markedly in FY 2025-26: Gross NPA ratio declined to 1.89% from 2.26% a year earlier, while Net NPA stood at 0.45%. The Provision Coverage Ratio (including technical write-offs) stood at 93.94%. Credit cost remained stable at 0.46%.

Bank of India: Multi-Channel Resolution with NCLT at the Core

Bank of India frames its NPA resolution strategy around a multi-pronged approach: NCLT proceedings, SARFAESI enforcement, sale to ARCs and NARCL, mega e-auctions, and compromise settlements — including proprietary schemes such as Star Sanjeevani and BOI-OTS.

In respect of RBI-referred NCLT accounts (List 1 and List 2), the bank holds 100% provision against the aggregate outstanding of ₹2,905.38 crore as on March 31, 2026. The bank’s gross NPA ratio improved sharply by 129 basis points year-on-year to 1.98%, while net NPA stands at 0.56%, down 26 basis points. The Provision Coverage Ratio improved by 118 basis points to 93.57%. Net NPA in absolute terms declined 20.68% year-on-year to ₹4,250 crore.

UCO Bank: Transformation Complete, IBC as Deterrent Tool
UCO Bank presents perhaps the most dramatic turnaround story in the cohort. The bank’s Gross NPA fell to ₹5,690 crore (2.17%) from ₹5,919 crore (2.69%) a year ago, while Net NPA now stands at a mere ₹702 crore (0.27%) — down from 0.50% the previous year.

The annual report explicitly describes the referral of eligible accounts to the NCLT and the invocation of personal guarantees under the IBC framework as key planks of its recovery and deterrence strategy. Alongside NCLT referrals, UCO Bank launched UCO Adalat — a structured negotiation platform enabling senior head office and zonal office executives to engage one-on-one with defaulting borrowers — and a special OTS scheme called Lakshya-Rin Mukti 2025-26 for NPA accounts with ledger balances up to ₹1 crore.

Total recovery and upgradation during the year stood at ₹2,944.30 crore. The Provision Coverage Ratio is a standout 97.79%, among the highest in the peer group. The slippage ratio remained well-controlled at 0.78%.

The Bigger Picture: A Sector Transformed
The aggregate picture that emerges from these annual reports is of a banking sector that has fundamentally reoriented its approach to stressed assets over the past decade. From a peak of deep double-digit NPA ratios in FY 2018 and FY 2019, the average Gross NPA ratio of India’s PSBs has come down to approximately 2.09% as of March 2026 — with an average Provision Coverage Ratio of 95.41% across the group.

The IBC and NCLT framework — enacted in 2016 — has been the single most powerful institutional tool enabling this transformation. By making insolvency time-bound, creditor-friendly, and professionally mediated, the Code shifted the power dynamic between banks and large defaulters, reduced settlement timelines, and enabled meaningful recoveries from accounts that were previously considered unrecoverable.

That said, practitioners note that challenges remain. A substantial number of cases admitted by the NCLT have ended in liquidation rather than resolution — reflecting that in many instances, the underlying businesses were unviable beyond salvage. Delays in tribunal proceedings and haircuts on admitted claims continue to moderate actual recoveries relative to gross exposures. And the transition to the Expected Credit Loss (ECL) framework in the coming year will test how conservatively banks have provisioned their remaining stressed books.

Also See: Insolvency Tracker

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Khaitan Electricals Limited, currently under liquidation pursuant to the Insolvency and Bankruptcy Code, 2016 (IBC), will auction a 20.52-acre freehold land parcel in West Bengal through an online e-auction on 10 June 2026. The sale is being conducted by court-appointed liquidator Kamalesh Kumar Singhania on an “as is where is” basis, with no warranties or representations.

The property, located at Mouza Sangur, Panchayat Protapnagar, under Sonarpur police station in South 24 Parganas district, carries a reserve price of ₹4,89,29,310 (approximately ₹4.89 crore). Interested bidders are required to deposit an Earnest Money Deposit (EMD) of ₹48,92,900 ahead of participation.

The auction will be held on the BAANKNET platform (https://ibbi.baanknet.com) between 11 AM and 1 PM on the auction date.

Eligibility documents and the EMD must be submitted no later than 8 June 2026. Prospective buyers may inspect the property on 1 June 2026 between 11 AM and 5 PM. The process memorandum, which contains dag numbers, detailed terms, and eligibility criteria, has been available on the auction portal since 12 May 2026.

All bidders are required to submit an undertaking confirming they do not suffer from any disqualification under Section 29A of the IBC. Failure to meet eligibility requirements at any stage will result in forfeiture of the EMD, in line with IBBI Circular No. IBBI/LIQ/84/2025 dated 28 March 2025. EMD payments must be routed exclusively through the BAANKNET e-wallet.

The liquidator has reserved the right to accept, reject, cancel, or modify any bid or auction term without assigning reasons. For queries, interested parties may contact the liquidation office at cirp.kel@gmail.com or call 9831084745 / 033-22118800.

Key dates at a glance

Last date for property inspection: 1 June 2026

Last date for eligibility documents: 8 June 2026

Last date for EMD submission: 8 June 2026

E-auction date & time: 10 June 2026, 11 AM – 1 PM

Liquidator: Kamalesh Kumar Singhania, IBBI Regn. No. IBBI/IPA-002/IP-N00023/2016-17/10050  ·  AFA valid up to 30 June 2027

Background

The National Company Law Tribunal (NCLT), Hyderabad Bench, on 23 August 2019 passed a liquidation order against Khaitan Electricals Limited, a company headquartered at the Co-operative Industrial Estate in Balanagar, Hyderabad, after the Corporate Insolvency Resolution Process (CIRP) failed to attract a viable resolution plan.

The insolvency proceedings were originally triggered by Bank of India, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The CIRP was formally initiated against Khaitan Electricals vide order dated 28 November 2018, with Mr. Kamalesh Kumar Singhania appointed as Interim Resolution Professional (IRP). He was subsequently confirmed as Resolution Professional (RP) by the Adjudicating Authority on 13 February 2019, following approval by the Committee of Creditors (CoC) at its second meeting on 24 January 2019.

Despite the RP publishing Form G and inviting Expressions of Interest (EOI) on two occasions, no resolution plan was received. With the statutory 180-day CIRP window expiring on 27 May 2019 and no rescue plan forthcoming, the CoC at its fifth meeting on 30 April 2019 voted with 79.78% majority to recommend liquidation and to appoint Singhania as Liquidator.

Also See: Rs 21.6 crore assets of Sri Pavana Keerti Hotels on sale under liquidation process

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The Supreme Court has upheld an order of the National Company Law Appellate Tribunal (NCLAT) setting aside insolvency proceedings initiated against KLSR Infratech Limited by operational creditor A.S. Met Corp Pvt. Ltd., while also endorsing observations that the insolvency framework appeared to have been used as a “pressure tactic” against the infrastructure company.

A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan on Wednesday dismissed special leave petitions challenging the NCLAT’s March 23, 2026 ruling, which had quashed the corporate insolvency resolution process (CIRP) initiated against the Hyderabad-based engineering and infrastructure company.

The apex court also dismissed a similar petition filed by another operational creditor, Bengal Cold Rollers Pvt. Ltd..

The dispute stemmed from transactions between 2019 and 2022 involving the supply of steel products, with A.S. Met Corp alleging unpaid dues of around ₹3.79 crore. However, KLSR had contended that several invoices relied upon by the creditor were fictitious and formed part of an alleged fraudulent arrangement involving former employees and third parties.

In its detailed order earlier this year, the NCLAT held that there was a genuine and pre-existing dispute between the parties, making the initiation of insolvency proceedings under the Insolvency and Bankruptcy Code legally untenable.

The appellate tribunal noted that KLSR had raised objections relating to fake invoices, alleged non-supply of goods and financial irregularities well before the issuance of the statutory demand notice under the IBC. It also relied on contemporaneous records, including internal audit findings, returned goods and cessation of business transactions between the parties.

The Supreme Court agreed with the NCLAT’s assessment that KLSR Infratech was a financially sound and profit-making company and observed that the insolvency mechanism could not be invoked as a substitute for debt recovery or coercive recovery proceedings.

KLSR Infratech is engaged in civil construction, water supply systems and urban infrastructure projects for government entities across multiple states.

The company and its director, A.S. Reddy, were represented by senior advocates Mukul Rohatgi, Niranjan Reddy and D.S. Naidu, along with a team from Karanjawala & Co. led by senior partner Ruby Singh Ahuja.

Also See: Govt dissolves SASF two decades after its creation to resolve IDBI bad loans

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India’s Insolvency and Bankruptcy Code completed ten years of operation this month, with the insolvency regulator reporting that the law has facilitated recoveries of over ₹4 lakh crore for creditors since its enactment in 2016, accounting for 95% of the fair value of assets processed through the system.

The Insolvency and Bankruptcy Board of India, in a statement marking the anniversary, said that as of March 2026, a total of 8,987 cases had been admitted under the Code, of which 7,102 had reached closure. Of these, 1,419 cases yielded formal resolution plans, while 3,003 ended in liquidation. The regulator said creditors recovered 167% of the liquidation value of assets through the resolution process, underlining the advantage of reviving companies as going concerns over selling them piecemeal.

IBBI Chairperson Ravi Mital said the Code had not merely reformed insolvency law but had produced an institutional transformation with far-reaching consequences for credit markets, corporate behaviour, and investor confidence.

Pre-admission settlements dominate

The regulator highlighted that the Code’s impact extended well beyond formal proceedings. More than 30,000 cases filed before the National Company Law Tribunal were withdrawn at the pre-admission stage, with the amounts involved estimated at nearly ₹14 lakh crore. These settlements, the IBBI said, reflected the deterrent effect of the law in compelling borrowers to resolve stress before it escalated to formal insolvency.

The board said that without these pre-admission settlements, the banking sector’s gross non-performing asset ratio would have remained substantially above the 2.1% recorded as of September 2025. The ratio stood at 11.8% in 2017, a year after the Code was enacted.

Banks’ primary recovery tool

The Reserve Bank of India’s Report on Trends and Progress of Banking in India 2024–25 identified the Code as the most effective mechanism for recovery of stressed assets. Of the total ₹1.04 lakh crore recovered by scheduled commercial banks through all channels in the period, nearly ₹0.54 lakh crore — or 52.4% — came through the IBC process. The RBI report also noted that recovery rates under the Code improved to 36.6% in 2024–25 from 28.3% the previous year.

Average recovery rates have risen from 15–20% in the pre-IBC period to around 30% since the Code’s implementation, while resolution timelines have compressed from six to eight years to approximately two years.

Distressed companies revived

Of the 7,102 closed cases, approximately 58% resulted in successful rescue rather than liquidation. The IBBI noted that around 42% of companies that found resolution plan buyers had previously been with the Board for Industrial and Financial Reconstruction or were effectively defunct at the time of admission.

A study by IIM Ahmedabad published in 2025, covering resolved firms in the five years following resolution, found average sales increased by 89%, capital expenditure rose by 106%, and asset turnover improved by 131%. The aggregate market capitalisation of resolved listed entities rose from approximately ₹2.8 lakh crore to around ₹9 lakh crore over the same period.

Borrower behaviour shifts

An IIM Bangalore study on the Code’s behavioural impact found that the proportion of loan accounts transitioning from overdue to normal status increased steadily between 2018 and 2024. The average number of days an account remained overdue fell from 248–344 days to 30–87 days over the period.

S&P Global Ratings upgraded India’s insolvency framework from ‘Group C’ to ‘Group B’ during the decade, citing improvements in recovery efficiency and the resolution ecosystem.

The IBBI said the continued evolution of the insolvency system would remain critical to India’s goal of becoming a developed economy by 2047.

Also See: Govt dissolves SASF two decades after its creation to resolve IDBI bad loans

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The Government of India has dissolved the Stressed Assets Stabilisation Fund (SASF), a special purpose vehicle created more than two decades ago to take over and resolve bad loans from the erstwhile Industrial Development Bank of India (IDBI), marking the end of one of the country’s earliest institutional mechanisms for stressed asset management.

In a public notice issued through the Department of Financial Services under the Ministry of Finance, the government said the SASF Trust “stands dissolved at the end of business on March 31, 2026” following approval from the competent authority.

The SASF was established in September 2004 as part of the restructuring of IDBI Bank, which transitioned from a development financial institution into a commercial banking entity from October 1, 2004. At the time of the transition, IDBI had accumulated non-performing assets (NPAs) of around Rs 9,000 crore, largely due to its exposure to long-gestation industrial and infrastructure projects.

To ring-fence these stressed assets and clean up the institution’s balance sheet before its banking transformation, the Centre created the SASF in the form of a trust. The trust was tasked with acquiring, managing and recovering identified stressed loan assets transferred from IDBI.

The government had allocated Rs 9,000 crore in the Union Budget for FY05 for extending a loan to the trust. However, the transaction structure was designed in a way that did not require any immediate cash outgo from the exchequer. The trust invested the amount in zero-interest special government securities with a 20-year maturity, issued by the government itself.

These securities were then assigned to IDBI Bank in exchange for 636 non-performing and stressed loan accounts having a net loan outstanding of Rs 9,004 crore. The structure enabled IDBI to move legacy bad loans off its books while the trust pursued recoveries over time.

The SASF represented one of India’s earliest dedicated bad-bank style arrangements, preceding the emergence of asset reconstruction companies under the SARFAESI Act and later mechanisms such as the Insolvency and Bankruptcy Code (IBC) and the National Asset Reconstruction Company Ltd (NARCL).

Over the years, SASF handled recovery and resolution of several large corporate stressed accounts inherited from the development finance era. While detailed recovery figures were not disclosed in the notification, the trust had continued to exist for more than two decades to administer residual assets and recovery proceedings.

Its dissolution now effectively closes a chapter in India’s evolving bad-loan resolution framework that began before the country adopted modern insolvency and stressed asset resolution mechanisms.

Also See: ED’s PMLA case in Coastal Energen matter dropped; Adani-led resolution may face fresh challenge

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Sri Pavana Keerti Hotels India Private Limited, which is undergoing liquidation under the Insolvency and Bankruptcy Code (IBC), has put its hotel property in Hyderabad on the block through a fourth round of e-auction with a reserve price of Rs 21.6 crore.

According to the sale notice issued by liquidator Govada Venkata Subba Rao, the assets include hotel land, building, plant and machinery, and furniture, fixtures and equipment of the company. The property is being sold on an “as is where is”, “as is what is” and “without any warranties” basis through the IBBI’s Baanknet auction platform.

The asset comprises a hotel property located at Himayathnagar in Hyderabad with 50 guest rooms spread across Levels 6 and 7, covering 27,570 sq ft. The property also includes a banquet hall, restaurant and kitchen on Level 5 spanning 9,615 sq ft, along with an undivided land share of 1,500 square yards.

The e-auction has been scheduled for June 13, 2026, between 3 pm and 5 pm. Prospective bidders can conduct inspection and due diligence of the assets till June 11, while the last date for submission of bid documents and earnest money deposit (EMD) is June 12. The EMD has been fixed at Rs 2.16 crore, while the minimum bid increment is Rs 10 lakh.

The liquidator said interested bidders must comply with eligibility norms under Section 29A of the IBC and submit undertakings confirming they are not disqualified from participating in the process.

This is the fourth attempt to sell the hospitality asset through the auction route, indicating challenges in attracting buyers amid a subdued market for stressed hotel assets.

The Sri Pavana Keerti Hotels asset on sale is located in Himayathnagar, a prime commercial and residential locality in central Hyderabad with proximity to business districts, retail hubs and transport links, which could make the asset attractive for hospitality operators and real estate investors.

Under the IBC liquidation process, proceeds from the sale would be distributed among creditors in accordance with the waterfall mechanism prescribed under the bankruptcy law.

Also See: Parsvnath Developers dragged to insolvency court by ARCIL

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In a new twist to the Coastal Energen corporate insolvency resolution case, wherein Adani group along with DAIT have emerged as the successful resolution applicant, a special court in Chennai has dropped proceedings in a money laundering case filed by the Directorate of Enforcement (ED) against entities linked to the Coastal Energen after the predicate CBI FIR was quashed by the Delhi High Court. The XIII Additional Special Court for CBI Cases, Chennai, in an order dated April 28, 2026, held that proceedings under the Prevention of Money Laundering Act (PMLA) could not continue once the scheduled offence ceased to exist.

The ED case arose from an ECIR registered in January 2018 against promoter Ahmed Buhari and others after the Central Bureau of Investigation booked them in a case involving alleged supply of sub-standard coal to state-run NTPC Limited. According to the order, the CBI had registered FIR No. RC 221/2018/E-0003 on January 22, 2018 under IPC provisions relating to cheating and conspiracy, along with provisions of the Prevention of Corruption Act, against Buhari and others.

The ED subsequently initiated proceedings under the PMLA through ECIR/CEZO-I/01/2018 dated January 31, 2018 and filed a complaint against Buhari and six others. The Delhi High Court, however, quashed the predicate CBI FIR on September 16, 2025 in proceedings initiated by Buhari, citing closure of a connected FIR.

Following this, the Madras High Court separately quashed PMLA proceedings against accused persons Ahmed A.R. Buhari (A1), Precious Energy Holdings Ltd (A6) and Mutiara Energy Holdings Ltd (A7) through orders passed between October 2025 and March 2026.

The Chennai special court noted that the issue was settled by the Supreme Court’s ruling in Vijay Madanlal Choudhary vs Union of India, which held that if a scheduled offence is quashed or the accused is discharged, money laundering proceedings cannot survive independently.

Relying on the apex court judgment, the special court dropped proceedings against the remaining accused — Coastal Energy Pvt Ltd (A2), Coastal Energen Private Limited (A3), Coal & Oil Company DMCC, Dubai (A4) and Coal & Oil Company LLC, Dubai (A5).

The court, however, granted liberty to the ED to revive the PMLA proceedings if the predicate offence is restored in future, citing the Supreme Court’s 2023 ruling in Deputy Director, Directorate of Enforcement vs Emta Coal Ltd & Ors.

Coastal Energen CIRP

The development comes amid an ongoing insolvency resolution process at Coastal Energen, which operates a thermal power plant in Tamil Nadu. In September 2024, the Supreme Court allowed a consortium of Dickey Alternate Investment Trust (DAIT) and Adani Power Limited to continue operating the plant while hearing challenges to the approved resolution plan.

The apex court restored the status quo prevailing before the National Company Law Appellate Tribunal’s September 6, 2024 order that had stayed the Chennai bench of the National Company Law Tribunal’s approval of the consortium’s Rs 3,500-crore resolution plan.

The resolution plan had been challenged by former promoter Ahmed Buhari, who alleged irregularities in the bidding and approval process. Buhari had contended that Adani Power obtained a “back-door entry” into the process through DAIT after its own expression of interest was rejected by the resolution professional for delayed submission.

Under the approved resolution plan, financial creditors were slated to receive Rs 3,335 crore, amounting to 28.52% recovery against admitted claims of Rs 11,678 crore, while operational creditors were to receive Rs 4.64 crore. The plan also earmarked Rs 109 crore towards insolvency resolution process costs.

The committee of creditors had approved the plan with a 100% voting share. The resolution proposal envisaged implementation through a special purpose vehicle, Moxie Power Generation Ltd, incorporated in Chennai in January 2024.

Also See: SC allows Adani Power, DAIT to operate Coastal Energen plant

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Realty developer Parsvnath Developers has been admitted into corporate insolvency resolution process (CIRP) by the National Company Law Tribunal (NCLT), New Delhi Bench, after a prolonged legal and financial battle with lender Sammaan Capital and subsequently Asset Reconstruction Company India Limited (ARCIL).

The insolvency proceedings stem from a Section 7 petition filed by Sammaan Capital, formerly Indiabulls Housing Finance, over alleged loan defaults by Parsvnath. The debt was later assigned to ARCIL. The tribunal admitted the company into insolvency on April 30, 2026, after settlement talks between the parties repeatedly failed.

In its defence before the tribunal, Parsvnath claimed that the lender had sanctioned loans worth Rs 4,861.25 crore, of which Rs 4,153.26 crore was disbursed, while around Rs 394.36 crore was allegedly deducted upfront or recovered immediately upon disbursal.

The company argued that it and its group entities had already repaid Rs 4,696.01 crore, including over Rs 1,006 crore in interest, and contended that after reconciliation of accounts, no amount would remain payable to the lender. Parsvnath further alleged that the financial creditor imposed exorbitant interest rates, arbitrarily foreclosed loan accounts and failed to provide complete statements of accounts despite repeated requests.

The developer also relied on multiple arbitration and Delhi High Court proceedings to resist insolvency admission, arguing that disputes over reconciliation of accounts, release of securities and refund of alleged excess payments should be resolved through arbitration.

Court records show that the matter witnessed several rounds of adjournments between 2025 and 2026 as both sides explored settlement options. Parsvnath deposited and proposed payments running into tens of crores, including Rs 75 crore before the Delhi High Court and additional payments of over Rs 46 crore to the creditor during negotiations.

However, the NCLT noted that despite repeated opportunities, the parties failed to arrive at a final settlement. The tribunal observed that disputes relating to reconciliation and counterclaims could be addressed during the resolution process and were not sufficient grounds to reject admission of the insolvency petition.

The tribunal also referred to the Supreme Court’s ruling in B. Prashanth Hegde vs State Bank of India to hold that set-offs and counterclaims may be considered during submission of claims before the resolution professional, but do not bar admission under the Insolvency and Bankruptcy Code.

Manoj Kumar Anand has been appointed as the interim resolution professional (IRP). Creditors have been asked to submit their claims by May 27, 2026.

Founded in 1990, Parsvnath Developers was once among the leading listed real estate developers in north India, with a large portfolio of residential, commercial and township projects. Over the past decade, however, the company has struggled with mounting debt, delayed projects and weak cash flows amid a prolonged slowdown in the real estate sector.

Also See: Oberoi Realty-led consortium completes acquisition of Hotel Horizon for Rs 920 crore

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A significant parcel of commercial land and buildings belonging to Varanasi Auto Sales Limited (VASL) has officially been put up for sale via e-auction. The public announcement, issued by the court-appointed liquidator, marks a major step in the company’s ongoing liquidation process under the Insolvency and Bankruptcy Board of India (IBBI).

Strategic Location and Asset Details

The property on offer is a substantial plot of land including existing buildings and structures situated at Plot Arzi No. 9 in Village Babatpur, Varanasi. Spanning approximately 90.82 Biswa, the site boasts a highly strategic location on the Lucknow-Varanasi Highway.

Key features of the property include:

• Frontage: Approximately 150 square feet facing the main highway.
• Accessibility: Situated near the underpass of the overbridge, directly opposite the Varanasi Airport road.
• Infrastructure: The plot is demarcated by a boundary wall and features an entry gate directly from the highway.

Financial Terms and Auction Timeline

The liquidator has set the Reserve Price for the entire immovable property at Rs 34,42,00,000 (Thirty-Four Crores Forty-Two Lacs). Interested parties are required to submit an Earnest Money Deposit (EMD) of 10%, totaling INR 3,44,20,000.

The auction process is governed by a strict timeline:

• EOI Submission Deadline: Monday, May 25, 2026, by 5:00 PM.
• Due Diligence Period: Friday, May 29, 2026, to Monday, June 8, 2026.
• EMD Submission Deadline: Tuesday, June 9, 2026, by 6:00 PM.
• Auction Date: Friday, June 12, 2026, between 11:00 AM and 6:00 PM.

The bid increment value for the electronic auction has been fixed at Rs 10,00,000.

Bidder Eligibility and Requirements

The sale is being conducted on an “As is where is,” “As is what is,” and “No recourse” basis, meaning the buyer assumes all risks and the disposition is without warranties.

Potential buyers must satisfy the eligibility criteria under Section 29A of the Insolvency and Bankruptcy Code (IBC), ensuring they are not disqualified from bidding for the assets of a corporate debtor. While a single bidder is required to bid for the entire immovable property, the liquidator has clarified that a consortium of bidders may participate, provided they identify a single point of contact.

Administrative Details

The e-auction will be hosted on the IBBI-approved platform at https://ibbi.baanknet.com/eauction-ibbi/home.

The liquidation is being managed by Mr. Yogesh Gupta, based in Kolkata. Prospective bidders are encouraged to perform their own due diligence regarding land revenue, taxes, and ownership before participating. Detailed documentation and land-related files have been made available via a dedicated digital folder for transparency.

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