Tayal’s Take Insolvency For A Ride

New Delhi/ 23 December 2020: The Tayal ‘s, the erstwhile promoters of The Bank of Rajasthan Limited are also the Promoters of several Listed and unlisted Textile Companies of the country. They have garnered immense wealth by duping the Banks and diverting public money for accumulating wealth for themselves. Resultantly, the topmost Regulators of the country be it RBI as the banking sector regulator of the country or SEBI as the capital market regulator of the country have held them accountable for flouting the regulatory framework of the country. They have always denied  any  non  –  compliance  from  their  end  and  even  approached  the  Appellate Authority(ies) but the entire Regulatory framework of the country is aware of their misdeeds and has clearly upheld their non-compliant attitude towards the law of the land and their non-co-operation towards the Regulatory Authority(ies). Even when they approached the Securities Appellate Tribunal, pleading their innocence in the violation of the SEBI guidelines, the Appellate Tribunal took a stern view against their non-compliant attitude and clearly established vide its Order dated 11th February, 2014 how the Tayal Group of Companies had acted in concert and were in gross violation of the SEBI Guidelines both in letter and spirit. Even the Enforcement Directorate and the Serious Fraud Investigation Office are trying to dig into the fraudulent transactions of the Tayal Group of Companies.

Presently, there are Eight Companies of the Tayal group which are in Insolvency Process viz. JayBharat Textiles And Real Estate Ltd, KSL & Industries Ltd, Actif Corporation Limited Global Softech Ltd, K-Lifestyle & Industries Limited, Krishna Knitwear Technology Ltd, Asahi Industries Limited and in Eskay K’N’IT (India) Ltd. In these peculiar cases, the applications of the Secured Financial Creditor (the Banks) to the Adjudicating Authority have been opposed for more than one year by the Corporate Debtor but the applications of the Unsecured Financial Creditors which appears to be filed at the behest of the Corporate Debtor itself have been admitted unopposed resulting in the appointment of Interim/Resolution Professionals who are acting in connivance with the Promoters of the Corporate Debtor . The petitions of Unsecured Financial Creditors were admitted in NCLT on the ground that the Corporate Debtors have admitted the financial debts on affidavit. Thereby, it seems that the Applicants (Unsecured Creditors) and the Corporate Debtors are Related Companies. As a result of such nexus and the admission of such Applications, the Committee of Creditors constituted in the Insolvency Process of these Companies, the Secured Financial Creditors have been put into minority and the entire Insolvency Process is controlled by the Unsecured Creditors and the Resolution Professionals nominated by them. These Unsecured Creditors are charging a heavy rate of Interest to the Corporate Debtors and the Directors of these Unsecured Creditors are the employees of the Tayal Group of Companies. It has also been observed that the Unsecured Financial Creditors, which have Paid- Up Share Capital of merely Rs. One Lakh but have given Unsecured Loans to the tune of Rs. 300 Crores. Moreover, if any Resolution Plan is submitted in any of these Companies, the Secured Financial Creditors will have to take a heavy hair cut not only on the basis of reduced share in the Committee of Creditors but definitely, preference in repayment would be given to these Unsecured Financial Creditors. There is also uniformity of Auditors in all the Unsecured Financial creditors and the Corporate Debtor.

In the Companies in which the Tayal’s are facing problems and are not able to control upon the Committee of Creditors and/or the Resolution Professional , they are approaching the Appellate Authority(ies) to ensure that they have entire control over the Insolvency Process of the said Companies .Hence, it can be clearly seen that in all the Companies wherein they are able to dictate their terms on the Resolution Professional and the Committee of Creditors , they are not approaching the Appellate Authorities and wherein they are not able to do so , they are approaching the Upper Court(s) and leaving no stone unturned to set aside the Insolvency admission Order by presenting distorted facts and information forth the Court.

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