NCLT Directs Lenders To Refund Rs 148 Cr To The Insolvent Siti Networks

Axis Bank and other creditors of the insolvent Siti Networks have been directed by the National Company Law Tribunal (NCLT) to reimburse the business for Rs 143 crore. The Essel Group company Siti Network is going through insolvency proceedings.

The tribunal declared, "Within four weeks, all transactions and appropriations made between March 7, 2023, and August 10, 2023, shall be reversed and the monies repaid to the corporate debtor's account.”

The bench, which consists of technical member Charanjeet Singh Gulati and judicial member Lakshmi Gurung, also affirmed that Siti Networks' insolvency began on February 22, 2023 and that all insolvency-related actions should be taken into account as of that date.

Resolution professional (RP) Rohit Ramesh Mehra discovered that Axis Bank had taken money out of Siti and given it to several other lenders, including throughout the stay. Mehra took over the company's activities in August 2023. Among these lenders were IDBI Bank, Aditya Birla Finance, RBL Bank, and IndusInd Bank.

The Asset Reconstruction Company (India), a financial creditor of Siti, filed an application claiming that certain creditors had taken money out of the company while it was under a moratorium and during a stay on its bankruptcy proceedings. This request was granted by the Mumbai bench of the tribunal.