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Aayas Trade Services move NCLT To initiate insolvency process against Mantri
A creditor of Bangalore’s city based realtor Mantri, has been dragged to the National Company Law Tribunal for initiation of insolvency proceedings against the real estate developers for failure to finish a housing and commercial project in southern India.
Aayas Trade Services, an investee of Israel-based Elbit Plaza Indian Real estate Holdings, has sent a demand notice to the developers and have file a petition before the National Company Law Tribunal regarding the matter following the demand notice.
Mantri had raised a loan of Rs. 530 Crore from Aayas Trade Services in order to complete a housing and commercial project in southern India. However it has failed to complete the project and also has delayed in the repayment of the loan amount. It has been more than ten years. The loan was raised between 2007 and 2010. It is said that Elbit was supposed to receive round Rs. 276 Crore from Mantri developers but the latter had defaulted on the repayment.
On the other hand, the counsel representing Mantri developers has said that the agreement between the parties, i.e. Mantri and Aayas Trade Services was purely contractual and there is no relation of debtor and debtee between them. Instead Elbit owns Mantri some obligations. The move of Aayas approaching the NCLT and naming Mantri as a corporate debtor is not justified by any means.
Mantri is being investigated by the Bangalore police in some cheating and fraud matters apart from the present case. Elbit had entered into an agreement with Mantri for setting up a Special Purpose Vehicle (SPV) for the construction of a huge project named, Varthur Hobli, in Bangalore. The director of Mantri Developers - Snehal Mantri was caught and detained by the police on Indira Gandhi International Airport while she was all set to fly to Singapore. She is also the wife of the managing director, Sushil Mantri.
