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NCLT allows ICICI Pru Venture Capital to withdraw insolvency proceedings against ATS group firm

The dispute relates to a Rs 75 crore loan by ICICI Pru Venture to the Noida-based developer. The National Company Law Appellate Tribunal had earlier stayed the insolvency proceedings initiated by NCLT in March 2022.

Representative image.

Representative image.

The National Company Law Tribunal (NCLT) has allowed ICICI Prudential Venture Capital to withdraw the insolvency proceedings against Anand Divine Developers, a wholly owned subsidiary of ATS Infrastructure, on May 25.

Last month, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings initiated by NCLT in March 2022 against the developer on a petition by ICICI Prudential Venture Capital for outstanding dues of around Rs 25 crore.

What’s the issue?

ICICI Prudential Venture Capital had given a loan of Rs 75 crore to Anand Divine Developers in July 2014. Anand Divine Developers repaid Rs 92.50 crore in December 2017, including the principal amount of Rs 65 crore and Rs 27.50 crore as interest. The remaining amount of Rs 9.37 crore was due for payment in March 2018.

On May 9, NCLAT had permitted Anand Divine Developers to withdraw its petition against the NCLT order, following a settlement of a financial dispute with ICICI Prudential Venture.

Close

Anand Divine Developers subsidiary houses the ATS Triumph project on the Dwarka Expressway, which was allotted to homebuyers in 2018. The project has 443 apartments, of which 78 are occupied.

An ATS group spokesperson said the company has already settled the issue with ICICI Prudential Venture Capital.

"The withdrawal petition filed by the lender is an important legal formality to bring an amicable closure of the issue," he added.

"Our association with ICICI Prudential Venture Capital is very strong and robust. Due to COVID-19, the real-estate industry has undergone some pain. The situation has improved in the last couple of months as the sale of residential units has witnessed robust demand. We are committed to honouring every commitment to all stakeholders, including homebuyers, financial lenders and others," said the spokesperson.
Moneycontrol News
first published: May 25, 2022 03:47 pm
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