NCLT disposes bankruptcy plea filed by SBI, IDBI

New Delhi: In a relief to Reliance Infrastructure, National Company Law Tribunal (NCLT) has disposed of insolvency case filed by SBI and IDBI Bank against Mumbai Metro One Pvt Ltd (MMOPL).

Mumbai Metro One Pvt Ltd (MMOPL) is a 74:26 joint venture of Reliance Infrastructure Ltd and Mumbai Metropolitan Regional Development Authority (MMRDA). "We wish to inform you that the Section 7 petitions of SBI and IDBI Bank are disposed of by NCLT Mumbai in view of OTS (one-time debt settlement) issued by all lenders, against Mumbai Metro One Pvt Ltd (MMOPL)," Reliance Infrastructure Ltd said in a regulatory filing on Monday. An application under Section 7 of Insolvency and Bankruptcy Code (IBC) is initiated by a financial creditor either on their own or jointly with other financial creditors for initiation of Corporate Insolvency Resolution Process against a corporate debtor. State Bank of India (SBI) had in August 2023 filed an application before the NCLT against the Mumbai Metro, to recover Rs 416.08 crore, followed by the IDBI Bank. SBI and IDBI Banks are part of the six lenders' consortium who financed the Mumbai Metro project. The total principle debt of the consortium in Mumbai Metro One Pvt Ltd was Rs 1,711 crore.