NCLT orders insolvency proceedings against Fort Projects

The NCLT appointed Kannan Tiruvengadam as the interim resolution professional for the Corporate Insolvency Resolution Process (CIRP) of Fort Projects.

KOLKATA: Last week, the Kolkata bench of the National Company Law Tribunal (NCLT) issued a directive for insolvency proceedings against Fort Projects (P) Ltd in response to a complaint lodged by Emami Realty, a prominent entity within the Emami Group. Fort Projects, a key player in the city’s real estate sector and part of the Fort Group, has 15-16 significant projects in south Kolkata, including notable ventures such as Fort Knox.

The NCLT appointed Kannan Tiruvengadam as the interim resolution professional for the Corporate Insolvency Resolution Process (CIRP) of Fort Projects. Emami Realty, the financial creditor in this case, cited a total default amounting to Rs 91 crore, with the principal being Rs 82 crore and the remaining over Rs 9 crore as interest.

The genesis of the insolvency proceedings can be traced back to a loan agreement in February 2016. Fort Projects, in collaboration with Gagan Dealcom Private Limited and 70 other co-owners/corporate guarantors, sought a financial accommodation/loan of Rs 70 crore from Emami Realty for various developmental projects. The agreement stipulated that the interest rate would be determined by the chairman of the Emami Group of Companies, and the decision would be final and binding on the borrowers. The repayment, as per the agreement, was to be completed within 9 months from the date of execution, inclusive of interest.

The NCLT order, issued under section 7 of the Insolvency & Bankruptcy Code, 2016, states, “The application filed by Emami Realty Limited (financial creditor) is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of Fort Projects Private Limited (corporate debtor).” This legal action marks a significant development in the financial landscape of Fort Projects and its associated ventures.

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