NCLT Kolkata hearing: Allegations of fraud in INCAB Jamshedpur Liquidation Case

Mail News Service

Jamshedpur, August 21: The National Company Law Tribunal (NCLT) Kolkata, presided over by Members Arvind Devanathan and Bidisa Banerjee, continued hearings today on the INCAB case. Advocate Akhilesh Srivastava presented a detailed argument, challenging the legitimacy of the current resolution process and alleging significant fraud.

Srivastava argued that INCAB Company, which had been defunct from 1993 to 1996, had all its financial loans classified as Non-Performing Assets (NPAs) by 1996. No financial institution or bank filed a recovery petition for these loans during this period, and thus, according to Srivastava, all loans should have been extinguished by then. He accused fraudulent companies—Kamla Mills, Fasqua, Pegasus, and Tropical Bencher—of colluding with the Resolution Professional to fraudulently secure a liquidation order on 07 February 2020. Despite the NCLAT’s order on 04 June 2021, Srivastava claimed that Pankaj Tibrewal, the new Resolution Professional, continued to obstruct the revival of INCAB.

The advocate highlighted discrepancies in asset transactions, arguing that private companies cannot legally purchase non-performing assets under the SARFAESI Act and RBI guidelines. He noted that the loans, which had expired by 1996, were inexplicably bought and sold in 2006, 2007, and 2016. He cited a 24 October 2014 statement from the State Bank of India, which indicated that a one-time settlement of Rs. 21.63 crores had been finalized for the outstanding loans. This amount, approved by the Delhi High Court and the Supreme Court, should preclude any further legal action according to Srivastava.

The advocate also contested Universal Leader’s claim of repaying loans and selling non-performing assets, arguing that such liabilities would have legally expired after three years. He accused RR Cables and Pegasus of attempting to seize INCAB’s land without genuine intent to revive the company. Srivastava criticized Tata Steel, alleging that it had used the legal system to illegitimately acquire INCAB’s land, which Tata had contested in the Supreme Court.

Srivastava further alleged that Resolution Professional Pankaj Tibrewal had committed breach of trust, mismanaging funds amounting to over Rs. 5 crore. He called for Tibrewal’s removal and proposed the appointment of a more trustworthy resolution professional to revive INCAB.

Participating advocates Akash Sharma and Manjari Sinha supported Srivastava’s arguments on behalf of the employees. The NCLT’s ongoing deliberations will determine the future of INCAB amid these serious allegations of fraud and mismanagement.