Date: July 3rd, 2026
Financial Defaults Disclosure
Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21st, 2019, the company disclosed the following financial defaults as of June 30, 2026:
- Total amount outstanding to banks/financial institutions: ₹32.33 Crore
- Amount of default to banks/financial institutions: ₹32.33 Crore
- Total financial indebtedness including short-term and long-term debt: ₹32.33 Crore
- No defaults on unlisted debt securities (NCDs and NCRPS)
The delay in payment began due to COVID-19 pandemic restrictions disrupting the education sector, followed by subsequent challenges.
Invoked Corporate Guarantees
Apart from direct borrowings, the following corporate guarantees have been invoked against the company:
- Axis Bank Ltd: Guarantee for Sri Gayatri Education Society - ₹7.3 Crore (Secured)
- Asset Care & Reconstruction Enterprise Limited: Guarantee for Lakshya Forum for Competitions Private Limited - ₹16.69 Crore (Secured)
Total invoked corporate guarantees: ₹23.99 Crore
The financial defaults are in accordance with claims received from Secured Financial Creditors.
Legal Proceedings & Notes
Note 1: Loans previously held by Assets Care & Reconstruction Enterprises Limited were reassigned to Prudent ARC Limited vide deed of Assignment dated August 11, 2023.
Note 2: Shamrao Vithal Co-op Bank Ltd (SVC) submitted a claim of ₹49.72 crore for a corporate guarantee issued for subsidiary Labh Ventures India Pvt Ltd. This claim was rejected as the guarantee was not invoked by the Insolvency Commencement Date (December 16, 2022). SVC Bank filed an application before NCLT Mumbai, which was dismissed on March 27, 2025. The Bank has appealed this decision at NCLAT, where the matter remains pending.
Note 3: No changes have occurred in the disclosure information due to ongoing CIRP proceedings.
Corporate Insolvency Resolution Process (CIRP) Details
- CIRP initiated against the company by NCLT Mumbai order dated December 16, 2022
- Corporate Insolvency Resolution Process Commencement Date: December 16, 2022
- Mr. Ashwin Bhavanji Shah was initially appointed as Interim Resolution Professional (IRP)
- Committee of Creditors constituted on August 21, 2023
- Mr. Arihant Nenawati appointed as new Resolution Professional by NCLT Mumbai on January 22, 2024
- Resolution Professional IP Registration: IBBI/IPA-001/IP-P00456/2017-2018/10799