IndusInd, DBS Bank go to tribunal against Jyoti Structures' resolution plan

The company owes lenders around Rs 70 billion, and was part of the Reserve Bank of India's first list of stressed companies to be taken for insolvency proceedings

Legal representatives appearing on behalf of IndusInd Bank and DBS Bank have filed applications with the National Company Law Tribunal (NCLT) in Mumbai, opposing the current resolution plan of Jyoti Structures.

The legal representatives stated that improper procedures were followed during the voting on the resolution plan. A group of high net-worth investors led by Sharad Sanghi, chief of Netmagic Solutions, are the only party interested in acquiring Jyoti Structures. 

Lenders will receive Rs 30 billion over a period of 15 years, as per the existing resolution plan placed by the group of investors, while they infuse around Rs 1.5