Reliance Industries plea on Alok delisting: NCLAT gives Sebi last chance to reply

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New Delhi | Published: November 14, 2019 4:12 AM

RIL got debt-ridden Alok Industries after the Ahmedabad Bench of the National Company Law Tribunal (NCLT) had approved its Rs. 5,052-crore resolution plan in March this year.

On October 25, Sebi was granted two weeks to file reply.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday gave markets regulator Sebi one last chance to file its reply affidavit in a petition filed by Reliance Industries (RIL) seeking waiver in delisting procedure for Alok Industries which it got through the insolvency process.

RIL got debt-ridden Alok Industries after the Ahmedabad Bench of the National Company Law Tribunal (NCLT) had approved its Rs. 5,052-crore resolution plan in March this year.

However, while approving the scheme, the NCLT did not give its go-ahead to RIL’s plea for granting exemptions for delisting of Alok Industries’ shares from the bourses, prompting RIL to move to the NCLAT.

Since RIL relied on the Sebi amendment notification with regard to delisting of shares, the NCLAT had on September 11 impleaded SEBI and on October 15 granted the regulator seven days to file a reply affidavit to make its stand clear about the amendment related to delisting of shares. On October 25, Sebi was granted two weeks to file reply.

“It is stated that the copy of the affidavit filed by the Sebi has been served on the counsel for the parties. However, no such affidavit has been filed by the Sebi in this appellate tribunal. By way of last chance, one-days’ time is given to the Sebi to file the affidavit, failing which the appeal may be disposed of on the basis of record,” a two-member NCLAT Bench said on Wednesday.

Alok Industries, a Mumbai-based textile company, was in the first list of 12 companies issued by the Reserve Bank of India in 2017 for initiation of insolvency process.

Financial creditors have realised Rs. 5,052 crore or 17.11% of their total Rs. 29,523-crore admitted claim by way of the resolution of Alok Industries.

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