The Mumbai bench of the National Company Law Board (NCLT) has admitted an insolvency petition against city-based real estate developer Rashmi Housing for allegedly defaulting a payment to Essel Private Equity, a part of Essel Group.
In 2015, Essel Private Equity, through one of its funds, had invested ₹25 crore by way of non-covertible debentures (NCDs) in Rashmi Housing for the development of two projects on Mira Road and Naigoan, located on the outskirts of Mumbai.
As per the petition, the company has been defaulting on payments for a year and Essel tried to sort out the issues with the firm, including facilitating sales. The company has dues of ₹26.24 crore, including interest. However, the issues could not be resolved and since the company ‘repeatedly failed to meet its commitment’, Essel Private Equity approached the NCLT. After four months of hearing, the bench in its order dated December 14, observed that Rashmi had defaulted in its payment to Essel and accordingly admitted the petition.
O.P. Agrawal was appointed as the Interim Resolution Professional and asked to take over the operations of the company immediately.
