NCLT starts insolvency proceedings against Rolta India, appoints EY as RP

The National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against IT firm Rolta India Ltd.

A two-member Mumbai bench of the tribunal admitted the plea of -- Value Partner Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund -- claiming a default of around Rs 1,060 crore.

The NCLT has also appointed Shailendra Ajmera of the consultancy firm E&Y as the interim professional of the company to complete the Corporate Insolvency Resolution Process.

"The debts and default of the corporate debtor (Rolta) have been established and the application deserves to be admitted," said the NCLT.

The tribunal has also declared moratorium, prohibiting the lenders of the company to recover any amount the period.

Rolta India, the parent company of Rolta LLC and Rolta Americas LLC, had given corporate guarantee for these step down firm, who were the principal borrowers.

However, the principal borrowers failed to meet their payment obligations, following which the lenders approached NCLT against the parent company, which is Rolta India.