Authority: National Company Law Tribunal, Mumbai Bench-II (Hon'ble Shri Sanjiv Dutt, Member (Technical) and Hon'ble Shri Ashish Kalia, Member (Judicial))

Order Date: 07.07.2026

Case Overview

This order pertains to I.A. (I.B.C) (Plan) No.41/MB/2025 filed by Resolution Professional (RP) Ashok Kumar Golechha seeking approval of a Resolution Plan dated 20.01.2025 with Addendum dated 26.03.2025 submitted by Authum Investment and Infrastructure Limited for Vas Infrastructure Limited (Corporate Debtor). The plan was approved by the Committee of Creditors (CoC) with 100% voting share on 27.03.2025. The Corporate Insolvency Resolution Process (CIRP) was initiated against Vas Infrastructure Limited on 11.03.2024 based on a petition filed by Canara Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The principal allegations and issues considered by the Tribunal included:

  • Material irregularities in the conduct of CIRP by the RP
  • False and misleading representation in the Information Memorandum describing the Corporate Debtor as 'owner' of land at Village Shimpoli, Borivali (West) measuring 14,230.60 sq. meters (known as Haridas Nagar Housing Cooperative Society Ltd) when the Corporate Debtor only had development rights
  • Failure to identify and report Preferential, Undervalued, Fraudulent and Extortionate (PUFE) transactions under Sections 43, 45, 50 and 66 of the Code
  • Diversion of funds to related parties including Rs. 82 crores to Vas Educomp Pvt. Ltd., a defunct/shell company
  • Non-compliance with Regulation 35A of CIRP Regulations requiring applications for PUFE transactions within stipulated timelines
  • Non-furnishing of performance bank guarantee by Authum as required under Regulation 36B(4A) of CIRP Regulations
  • Declaration of the Corporate Debtor's loan accounts as 'fraud' by Canara Bank on 25.02.2026, after CoC approval of the resolution plan

Final Outcome

The Tribunal rejected the Resolution Plan submitted by Authum Investment and Infrastructure Limited. The Tribunal found material irregularities in the conduct of CIRP by the RP, including gross negligence, collusion with suspended management, misrepresentation of assets, and failure to comply with statutory duties. The Tribunal directed re-initiation of CIRP with a new RP to be appointed by the CoC, to be completed within 120 days from the date of the order. The Registry was directed to forward the order to IBBI for investigation into the RP's conduct and to the Chairman of Canara Bank for necessary action regarding the bank's failure to share critical information about fraud and fund diversion during the CIRP process.

Topics: Insolvency Process, Fraud Investigation, Corporate Governance