NCLT orders insolvency proceedings against Ruchi Soya

Debt-ridden Ruchi Soya Industries today said that insolvency proceeding has been initiated against the company and the powers of its board have been suspended.
On December 9, the company had said that petitions filed by Standard Chartered Bank and DBS Bank against Ruchi Soya Industries before the National Company Law Tribunal, Mumbai have been admitted.
In a filing to the BSE, Ruchi Soya said that pursuant to an order of the NCLT, Mumbai Bench, "Corporate Insolvency Resolution Process (CIRP) has been initiated for the company as per the provisions of the Insolvency and Bankruptcy Code".
Shailendra Ajmera of Ernst & Young has been appointed as Interim Resolution Professional (IRP) to carry the functions as mentioned under IBC Insolvency and Bankruptcy Code.

"Upon initiation of CIRP, the powers of the board of directors of the company have been suspended and shall be exercised by the IRP," the filing said.