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The National Company Law Tribunal's (NCLT's) Allahabad chapter ordered liquidation of two Rotomac group companies on Tuesday, The Economic Times reported.
Rotomac Global and Rotomac Exports are promoted by Vikram Kothari, who has been accused of a bank fraud.
The company had sought an extension of 90 days to complete its insolvency resolution process after the initial 180-day period expired on March 19, which was rejected by the Committee of Creditors.
During the 180-day period, no credible resolution plan was drawn up by Rotomac. An entity that had shown initial interest backed out after the banking fraud came to light.
“The liquidator is directed to submit the progress report of liquidation process within 30 days,” the NCLT said.
The two Rotomac companies owe almost Rs 4,000 crore to financial institutions like Bank of Baroda, Bank of India and the Union Bank of India.
The company engaged in merchant trading apart from manufacturing pens. The loans were primarily taken for the trade businesses.
The promoter's assets include a few pen-manufacturing facilities and collateralised securities, the report said.
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