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.
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