Essel Group files plea against Kotak AMC over Rs 13 crore unpaid dues, says it didn't honor contractual obligations
Essel Group has filed a plea against Kotak Asset Management Company (AMC) with the National Company Law Tribunal (NCLT), accusing that the company, acting as a corporate debtor, failed to fulfil its contractual obligations to repay dues amounting to Rs 12.99 crore, citing an agreement signed on April 6, 2019.
'As the Corporate Debtor failed and neglected to honour its contractual obligations under the agreement dated April 6, 2019, the Applicant, via a demand notice dated February 19, 2025, once again called upon the Corporate Debtor to release the due amounts as a pro-tem measure. To date, the Financial Creditor has not received any payment from the Corporate Debtor,' reads the plea filed by Konti Infrapower and Multiventures, an Essel Group firm, with the the tribunal. Essel Group legal strike against Kotak AMC
As per details, the case pertains to Rs 20-crore worth of non-convertible debentures (NCDs) subscribed by Kotak AMC from Essel Group entities, backed by a pledge of listed equity shares of Zee Entertainment Enterprises Limited (ZEEL), which served as the underlying security for the NCDs.
In February 2019, Kotak AMC sold the NCDs to other investors, and the Rs 12.99 crore unpaid advance relates specifically to this transaction, as per the plea.
In its petition, Konti Infrapower said that certain obligations arose from the NCD issue, under which it advanced Rs 12.99 crore to Kotak AMC, and under the agreement, the corporate debtor was mandated to repay the amount after EBI completed its annual inspection. The regulator was scheduled to issue its report following the inspection of Kotak AMC for the period from April 2019 to March 2020, it said, adding the advanced amounts were to be refunded once unit holders of Kotak AMC were paid under the underlying NCDs. Kotak AMC lied about SEBI inspection
To request the release of the advanced amount, Essel Group company said it wrote two letters to Kotak AMC on July 6, 2022, to which the creditor responded on July 28, 2022, claiming that SEBI had not completed its routine inspection.
However, Konti Infrapower claims that at that time, the regulator had completed its inspection, and prepared a report dated for March 28, 2023. The Essel Group company further claimed that Kotak AMC has liquidated the NCDs and repaid the unit holders.
NCLT has scheduled the matter for hearing on July 10 next month. Kotak AMC has yet to issue a response on the issue.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
a few seconds ago
- Economic Times
IFC, HDFC Capital partner for green affordable housing finance in India with $1 billion fund
AI generated image used for representation The International Finance Corporation (IFC) has entered into an agreement with HDFC Capital Advisors to anchor a $1 billion (about Rs 8,770 crore) real estate fund focused on green affordable housing in India. IFC, a member of the World Bank Group, will invest up to $150 million (about Rs 1,320 crore), in the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), which will be managed by HDFC Capital, the real estate private equity arm of the HDFC Group. The fund will finance projects that prioritise affordable and mid-income housing, while implementing the EDGE (Excellence in Design for Greater Efficiencies) green building framework, in line with global sustainability standards.'For India, housing remains a social imperative and has strong multiplier effects on the economy. The H-DREAM Fund integrates sustainability with financing, which will go a long way in addressing the housing gap and build resilient communities. IFC continues to play a pioneering role in facilitating a greener and more inclusive India,' said Deepak Parekh, non-executive chairman, HDFC commitment is expected to help mobilise up to $850 million, including sponsor commitment, of long-term capital from institutional investors. Additionally, the fund will enable the development of at least 25,000 green, affordable and middle-income housing units. 'Green affordable housing delivers a dual impact as it meets the urgent need for inclusive housing while advancing sustainability in urban development. IFC's investment in H-DREAM Fund is designed to demonstrate the viability of innovative financing vehicles and mobilise long-term private capital for green housing solutions,' said Imad N Fakhoury, regional director for South Asia, to him, the IFC-HDFC Capital partnership aims to help developers scale up green projects, create jobs, boost urban resilience and set a benchmark for sustainable urban growth.'HDFC Capital is focused on providing early-stage financing to address supply-side bottlenecks for high quality affordable and mid-income housing in India,' said Vipul Roongta, managing director and CEO, HDFC Capital. 'Our endeavour is to integrate financing, facilitate energy, water and material efficiency along with innovative technology-based solutions in housing development. This platform will channelise global and domestic capital to address the most basic social need of housing in India.'The fund has witnessed interest from global and domestic institutions and Indian family offices, with in-principle commitments of $350 million already in place, according to is the largest sustainability-led affordable housing fund in India—and among the largest in the world. It also marks the biggest supply-side financing initiative in this segment. 'By leveraging market-based solutions and channelling institutional capital to underserved markets, this initiative will broaden access to housing finance, create opportunities for smaller developers, and strengthen and diversify the housing value chain,' said Carsten Mueller, IFC's regional industry director for manufacturing, agribusiness and services in Asia. The buildings sector accounts for about 33% of total electricity consumption globally, with the share of residential buildings at about 24%. Greening this sector is crucial to sustainably bridge the housing nascent, IFC estimates a potential investment opportunity of $1.4 trillion in India's green buildings market by 2030. Of this, $1.25 trillion or nearly 90% will come from the residential India, an estimated 275 million people, or 22% population, lack access to adequate and affordable housing. Urban housing shortfall stands at about 18 million housing units in tier-1 and tier-2 cities.
The Wire
a few seconds ago
- The Wire
Public Sector Banks Write Off Rs 4.48 Lakh Crore NPAs in Four Years; SBI, PNB Top the List: Report
According to the report, the State Bank of India, the country's largest public sector bank, leads the list with total write-offs worth Rs 80,197 crore from FY22-25. Representative image of a State Bank of India branch. Photo: Saurabh Shetty/Flickr. CC BY 3.0 Unported. New Delhi: Public sector banks (PSBs) have written off non-performing assets (NPAs) worth over Rs 4.48 lakh crore in the last four financial years, Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha on Wednesday (August 7). The revelation has raised serious questions on the functioning of the public banking system, according to a report by The Tribune. NPA refers to a debt instrument where the borrower has defaulted to make interests or principal repayments, and the loan may be at risk of default. According to the report, the State Bank of India, the country's largest public sector bank, leads the list with total write-offs worth Rs 80,197 crore from FY22-25. The Union Bank of India is next in line with write-offs amounting to Rs 68,557 crore, followed by Punjab National Bank with Rs 65,366 crore, and Bank of Baroda Rs 55,279 crore. Canara Bank reported R$ 47,359 crore in write-offs during the same period, while Indian Bank wrote off Rs 29,949 crore. Cumulatively, write-offs from 12 banks amounted to Rs 4.48 lakh crore. Loan write-offs are "technical" in nature and carried out in accordance with RBI guidelines after provisioning for four years, the government maintains. The ministry clarified that a write-off does not mean waiving the borrower's obligation, the report said. Recovery actions continue through mechanisms such as the Insolvency and Bankruptcy Code, the SARFAESI Act, Debt Recovery Tribunals and civil courts, it added. The government, however, did not provide any update on the recoveries made after the write-offs. Earlier in July, in a written reply to a question in Rajya Sabha, the finance MoS had noted that the government's gross NPAs reduced from 9.11% to 2.58% from March 2021 to March 2025. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
Time of India
a few seconds ago
- Time of India
Page Industries Q1 profit rises 21.5% to Rs 201 crore; revenue up 3.1% YoY
New Delhi: Innerwear and athleisure major Page Industries, the exclusive licensee of Jockey and Speedo in India, on Wednesday reported a 21.5% year-on-year rise in net profit to Rs 201 crore for the quarter ended June 30, 2025, compared to Rs 165 crore in the same period last year, as per its regulatory filing. The company's revenue from operations grew 3.1% YoY to Rs 1,316.6 crore, up from Rs 1,277.5 crore in Q1 FY25, according to its unaudited financial results. EBITDA stood at Rs 294.7 crore, marking a 21.1% increase YoY, while sales volumes grew 1.9% to 58.6 million pieces in the quarter. EBITDA margin improved to 22.4% during the quarter. Total expenses for the quarter were at Rs 1,061.2 crore, while profit before tax came in at Rs 270.2 crore, up from Rs 222.5 crore in the year-ago period. Commenting on the results, V.S. Ganesh, Managing Director, Page Industries, said, 'We have achieved PAT growth of 21.5% in the quarter. We continue to expand our consumer reach, pursue product innovation and process automation, while focusing on optimum market investments and cost efficiency.' The company also highlighted optimism for the upcoming quarters, citing favourable macroeconomic indicators. 'With all-time low inflation, lower borrowing rates, and rationalised direct taxes, we expect demand recovery in the coming quarters,' Ganesh added. Page Industries also said it is strengthening its portfolio to attract younger consumers through new launches under JKY Groove, and expects ecommerce adoption to further boost the organised retail ecosystem
