NCLT Admits Insolvency Plea Against Reliance Infra Subsidiary KM Toll Road
Reliance Infrastructure Ltd (RInfra) has disclosed that the National Company Law Tribunal (NCLT), Mumbai bench, has admitted a petition filed by State Bank of India (SBI) under the Insolvency and Bankruptcy Code, 2016. The petition, filed against KM Toll Road Private Limited (KM Toll Road), a wholly-owned subsidiary of RInfra, is for a claim amount of ₹233.44 crore, including interest. The Corporate Insolvency Resolution Process (CIRP) has been initiated against KM Toll Road. RInfra has stated that its exposure of approximately ₹548 crore in KM Toll Road has already been provided for in its books of accounts. The original project involved a highway project awarded by NHAI, with KM Toll Road incorporated as a Special Purpose Vehicle (SPV).
Key Highlights
- NCLT admits SBI's insolvency petition against RInfra subsidiary KM Toll Road.
- Claim amount stands at ₹233.44 crore, initiating Corporate Insolvency Resolution Process.
- RInfra's ₹548 crore exposure in the subsidiary is already accounted for.
- KM Toll Road was incorporated for an NHAI highway project.
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