NSE/BSE Codes: NSE: RELINFRA, BSE: 500390

Summary of Key Information:

Nature of Event / Disclosure:

Disclosure under Regulation 30 of SEBI Listing Regulations regarding admission of insolvency petition against wholly-owned subsidiary KM Toll Road Private Limited.

Involved Parties / Authorities:

  • Financial Creditor: State Bank of India (Petitioner)
  • Corporate Debtor: KM Toll Road Private Limited (Respondent)
  • Adjudicating Authority: National Company Law Tribunal, Mumbai Bench (Court III)
  • Interim Resolution Professional: Mr. Ashish Avinash Saoji (IBBI/IPA-001/IP-P01268/2018-2019/12150)
  • Other Lenders: Consortium including Yes Bank Limited, Andhra Bank, Bank of Maharashtra, Corporation Bank, Karnataka Bank, Punjab & Sind Bank, and Deutsche Investitions Und Entwicklungsgesellschaft MbH
  • Project Authority: National Highways Authority of India (NHAI)

Date / Timeline of Event:

  • Petition Filing Date: February 16, 2024
  • NCLT Order Date: July 22, 2026
  • Order Received by Company: August 05, 2026
  • Default Date (as per petition): December 01, 2016
  • NPA Declaration Date: March 15, 2019 (with retrospective effect from February 28, 2017)
  • Concession Agreement Termination: July 25, 2019 (by NHAI)

Brief Description of Outcome / Dispute:

The Hon'ble NCLT Mumbai Bench admitted the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by State Bank of India against KM Toll Road Private Limited for a claim amount of ₹233.44 crore (including interest). The dispute arises from default in repayment of term loans availed for a highway project. The Corporate Debtor had argued that the petition was time-barred, filed in violation of inter-creditor agreements, and against a solvent company awaiting arbitration outcome against NHAI, but all objections were rejected by the NCLT.

Impact of Outcome:

Financial Impact:
  • Claim Amount: ₹233.44 crore (including principal of ₹122.12 crore and interest/penal interest)
  • Parent Company Exposure: Reliance Infrastructure's exposure of approximately ₹548 crore in KM Toll Road is already provided for in its books of accounts
  • CIRP Costs: Financial creditor required to deposit ₹5 lakhs towards initial CIRP costs
  • Previous Payments: Corporate Debtor has paid ₹719 crores to consortium lenders as of December 31, 2024
  • Termination Payment Received: ₹181.21 crore received from NHAI in August 2020, entirely utilized for debt repayment
Operational / Business / Strategic Impact:
  • Moratorium Imposed: Complete moratorium under Section 14 of IBC effective from July 22, 2026
  • Management Change: Control of KM Toll Road vested with Interim Resolution Professional
  • Project Status: Concession Agreement with NHAI already terminated in July 2019, no ongoing operations
  • Arbitration Impact: Corporate Debtor's arbitration claims of approximately ₹2096 crore against NHAI now subject to CIRP process
  • Asset Value: Corporate Debtor's only significant asset is its arbitration claim against NHAI
Other Implications:
  • Legal Precedent: NCLT reaffirmed that individual consortium members can file Section 7 petitions independently
  • Limitation Clarification: Balance sheet acknowledgments and OTS proposals extend limitation period
  • Regulatory Compliance: SEBI Listing Regulations disclosure requirement fulfilled by parent company

Next Steps / Required Actions:

  • IRP Appointment: Mr. Ashish Avinash Saoji appointed as Interim Resolution Professional
  • CIRP Initiation: Corporate Insolvency Resolution Process to commence immediately
  • Moratorium Period: Effective until completion of CIRP or approval of resolution plan/liquidation order
  • Public Announcement: Required to be made immediately under Section 13 of the Code
  • Information Submission: Suspended directors and employees must provide all documents and information to IRP
  • ROC Update: Registrar of Companies, Mumbai to update master data of Corporate Debtor