MP Neeraj Shekhar writes to PM on vested interests to derail NCLT resolution cases

MP Neeraj Shekhar writes to PM on vested interests to derail NCLT resolution cases

New Delhi: Rajya Sabha member Neeraj Shekhar who is also a member of the all-powerful committee on home affairs has written a letter to the Prime Minister’s office, asking him to take cognizance of the attempts by vested interests to derail the resolution of companies under the National Companies Law Tribunal (NCLT).

In his letter, Samajwadi Party leader Shekhar said that the NCLT processes are facing hurdles on account of motivated media campaigns against companies by interested parties who may have participated in the process but may not have won.

The letter was also marked to the offices of the Central Vigilance Commission, the Central Bureau of Investigation, the Insolvency and Bankruptcy Board of India and the Ministry of Corporate Affairs.

Allegations by MP

Neeraj in his letter alleged that he had received information from a whistle-blower which stated alleging some sections of the media were involved in an orchestrated campaign to conduct a smear campaign against various resolution cases that are presently in NCLT, derailing the due process of the law.

“It has come to my attention from credible sources that a smear campaign is being run targeting genuine resolution cases under IBC such as Educomp Solutions and others.

“These companies are national assets with several thousand employees and a resolution of these companies under the aegis of the IBC code gives them a chance to recover, save the jobs of thousands of employees and revive India’s pioneering companies which is the intention of the act“, Shekhar said in his letter.

Educomp Solutions Became the Target of False News

Educomp Solutions, the erstwhile promising player in the private education space filed for insolvency last year. The company’s resolution for its sale to Ebix, an Atlanta Headquartered company was passed with 75% vote by its committee of creditors earlier this year.

Notwithstanding the process, Educomp has become the target of a false news story paid by competitors, Shekhar said in his letter.

“Unfortunately, some sections of the news media today are not doing due diligence of its reports and the motivations of the stories and checking their authenticity”

Shekhar further said that such instances may create corporate mayhem, leading to loss of lakhs of jobs if such anti-national or competitive forces are allowed to subvert the spirit of the Insolvency Code.

“I would urge your good offices to ensure that the letter and spirit of the IBC code is upheld and genuine resolutions which have followed the process are not allowed to be derailed by vested interests,” he said in his letter.