Mumbai, Jan 5 : In a major set back to Anil Aggarwal, the National Company Law Appellate Tribunal (NCLAT) has set aside the Rs 2962.02 crore takeover bid of Videocon Industries by the billionaire’s Twin Star Technologies.

The Tribunal has also asked the creditors to invite fresh bids for the recovery of their dues of nearly Rs 64,637.6 crore.

Setting aside the approval of the resolution plan by the Committee of Creditors (CoC) as well as the NCLT, a two-member bench of Jarat Kumar Jain and Ashok Kumar Mishra said the provisions of the “Code has not been complied with” and that the “approval of the Resolution Plan is not in accordance with the Code”.

“Accordingly, the approval of Resolution Plan by the CoC as well as Adjudicating Authority is set aside and the matter is remitted back to CoC for completion of the process relating to CIRP in accordance with the provisions of the Code,” the bench observed.

In September last year, the creditors of crisis hit Videocon Group, had approached the insolvency appellate NCLAT seeking fresh bids for the FMCG as the Resolution Plan of Rs 2962.02 crore offered by Twin Star Technologies and approved by the Committee of Creditors and the NCLT, meant a haircut of nearly 96%.

Last year, while a majority of lenders had previously accepted the bid offer, Bank of Maharashtra (BoM) and IFCI had opposed it, and had challenged it before the NCLAT stating that the provisions of the IBC had not been complied with.

According to the NCLAT order, creditors made total claims of Rs 72,078.5 crore on Videocon, out of which claims of Rs 64,637.6 crore were verified and accepted for the purpose of insolvency.

“It was stated that the plan provides for a meager amount of Rs 2962.02 crore against an admitted liability of approx. Rs 65,000 crore. The said waiver is almost Rs 62,000 crore of admitted claims and Rs 69,000 crore of total claims whereby this public money is lost, the haircut is approx. over 95 per cent. Even the claims of the financial creditors have been settled below 5% while that of OC (Operational Creditor) is hardly 0.72%,” it said.(UNI)