To withdraw the company from insolvency resolution proceedings has hit a blockade, by the promoters of the Sterling Biotech Ltd. In the ongoing investigations, Andhra Bank had started the process of insolvency against Sterling Biotech Ltd. In June last year. The Mumbai bench of the National Company Law Tribunal has refused to accept the settlement plan proposed by the promoters of the company, earlier this week.
The NCLT has enquired to hear from the Income Tax Office, Ministry of Corporate Affairs, SEBI, Enforcement Directorate, CBI and RBI before concluding the case. However, there are several other cases pending on corruption and money laundering against the promoters, Chetan Sandesara, and Nitin Sandesara and suspended directors of the Sterling Biotech Ltd.
After which, the promoter group reached to the CoC with a settlement offer which was, however, rejected. Later, a revised offer was submitted and was approved by more than 90 percent of the creditors’ committee by vote share.
The NCLT in its order said raised doubts about how the proposal was submitted and approved by the creditors’ committee when the company’s promoter/director is a deserter.
It also said, “We often get the news from newspapers that various government agencies like Enforcement Directorate, CBI and other agencies are unable to trace the promoters of the corporate debtor (Sterling Biotech).”