State-run lender Indian Bank has taken legal action by approaching the insolvency court against Mumbai Metro One Private Limited (MMOPL) due to defaults on its loans. The bank has initiated proceedings under section 7 of the Insolvency and Bankruptcy Code (IBC) against MMOPL. This specific section allows a creditor to file an application to start a corporate insolvency resolution process (CIRP) against a corporate debtor in instances of loan default or financial distress.
MMOPL is a joint venture of Anil Ambani-owned Reliance Infrastructure Ltd and Mumbai Metropolitan Regional Development Authority (MMRDA).
Earlier, IDBI Bank and the State Bank of India (SBI) had dragged Mumbai Metro to the insolvency court.
“We wish to inform you that Indian Bank, another lender being part of 6 lender consortium has also filed a similar application against MMOPL. The total principle debt of the consortium in MMOPL is Rs 1,711 crore,” Reliance Infrastructure Ltd said in an exchange filing on January 15.
In August 2022, SBI filed a case under the CIRP against MMOPL. “SBI has filed a petition under section 7 of IBC against MMOPL, a JV of the Company with MMRDA, operating the metro line from Versova to Ghatkopar, before the NCLT Mumbai for recovery of about Rs 416.08 crore,” Reliance Infrastructure had said in a regulatory filing.
Similarly, IDBI Bank, in November 2022, filed a similar case for recovery of Rs 133.37 crore dues including interest.
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