Govt stops sale of Central Electronics to Nandal Finance over legal issue

The case pending against Nandal Finance is a winding up petition filed by RoC over allegations of money laundering

The Centre has terminated the sale of Central Electronics Ltd (CEL) to Nandal Finance & Leasing as the litigation pending against the successful bidder at the National Company Law Appellate Tribunal (NCLAT) violates the eligibility criteria for the sale.

The Alternative Mechanism, consisting of Finance Minister Nirmala Sitharaman, Minister of Road, Transport and Highways Nitin Gadkari and Minister of State (MoS) for Science and Technology Jitendra Singh, has recommended “disqualifying the successful bidder, excluding the successful bid from any further consideration, and terminating the current transaction.”

Several allegations were made against the bidder and the process to shortlist Nandal Finance as the