Emami Realty Complaint Leads to NCLT’s Insolvency Proceedings Against Fort Projects (P) Ltd in Kolkata.
Fort Projects is part of Fort Group , one of the leading real estate firms in the city, while Emami Realty, the creditor, is part of Emami Group . Emami Realty also has big projects across the city.
Kannan Tiruvengadam has been appointed interim resolution professional for the Corporate Insolvency Resolution Process (CIRP) of Fort. Incidentally, Fort Projects has 15-16 big projects in south Kolkata, including some signature projects like Fort Knox.
The application filed by Emami Realty Limited (financial creditor), under section 7 of the Insolvency & Bankruptcy Code, 2016, is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of Fort Projects Private Limited (corporate debtor),” the NCLT order said.
As per the order, the total default claimed is Rs 91 crore, in which the principal is Rs 82 crore and the rest over Rs 9 crore is interest. As per the order, Fort Projects, along with Gagan Dealcom Private Limited, had approached Emami Realty to seek financial accommodation/loan of Rs 70 crore for undertaking developmental work of various properties for its real estate business.
A loan agreement was made in February 2016 between Fort Projects and Gagan Dealcom along with 70 other co-owners/corporate guarantors and Emami Realty. “As per the loan agreement, interest is payable at the rate to be decided by the chairman of Emami Group of Companies and decision taken by chairman shall be final and binding on the borrowers. The agreement provides repayment within 9 months from the date of execution of the said agreement along with interest,” the preamble to the order said.