The National Company Law Tribunal (NCLT), Chennai, has ordered liquidation of Thiru Arooran Sugars Ltd. after lenders did not find any viable plan for revival of the company.
In 2019, the NCLT had ordered insolvency proceedings against Thiru Arooran Sugars in a case filed by the State Bank of India (SBI) for alleged default of ₹149.36 crore.
An SBI-led consortium, which included Punjab National Bank, IDBI Bank, UCO Bank and Union Bank of India, had granted credit facility to the tune of ₹159.94 crore to the company in 2016.
In his petition, R. Raghavendran, the resolution professional for Thiru Arooran Sugars, said that the liquidation value for the land and building had been fixed at about ₹183.2 crore.
A resolution plan was submitted by M/s KALS Distilleries Private Ltd., which was rejected by the committee of lenders, having a voting share of 76.02% and hence deemed to have voted for liquidation of Thiru Arooran Sugars, he added.
The NCLT appointed Ramakrishnan Sadasivan as the liquidator to carry out the liquidation process.
In May 2019, the Economic Offences Wing (EOW) of the Cuddalore district police had arrested R.V. Tyagarajan, chairman-cum-managing director of Thiru Arooran Sugars, on charges of cheating more than 1,500 sugarcane farmers to the tune of ₹80 crore.
