The National Company Law Tribunal (NCLT) declared the resolution plan by Wadhwa Buildcon LLP s promoters invalid, citing conduct issues by the Resolution Professional (RP) and the promoters being declared wilful defaulters. Bank of India, the company s financial creditor, raised concerns about irregularities in the approval process, leading to the plan s rejection. NCLT found the voting dynamics skewed, favoring homebuyers over financial creditors due to RP s actions.
Wadhwa Buildcon: The matter, brought by the company’s financial creditor Bank of India, highlighted various irregularities in the approval process of the resolution plan, ultimately leading to its rejection.
The resolution professional s actions, including the delay in presenting the resolution plan and the addition of homebuyers to the committee, were seen as detrimental to the interests of the lender. Furthermore, it was discovered that promoter of the company, Ankit Wadhwa, was declared a wilful defaulter prior to the submission of their revised resolution plan. Despite this, the resolution professional failed to disclose this crucial information to the committee of creditors (CoC).
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