The Workers’ Union of Hindustan National Glass & Industries Ltd. (HNGIL) has raised concerns over the conduct of M/s Exclusive Capital Ltd. (ECL), a Reserve Bank of India (RBI)-registered Non-Banking Financial Company (NBFC), during the ongoing corporate insolvency process of HNGIL.
In a representation dated June 24, the union urged the RBI and Justice (Retd.) R.K. Gauba — the Court-appointed Observer for ECL — to investigate the source of funds used by ECL to acquire debt from original lenders of HNGIL. The union has alleged that funds potentially siphoned from ECL were used to secure a position on HNGIL’s Committee of Creditors (CoC), granting access to confidential information during the insolvency proceedings.
On 29 January 2025, a 3‑judge Supreme Court bench rejected AGI Greenpac’s bid (due to lack of CCI approval) and directed HNGIL’s CoC to consider INSCO’s resolution plan. AGI’s subsequent review petition was dismissed by the Court in May 2025. INSCO’s revised ₹2,752 cr takeover proposal is now under CoC consideration. If approved, it represents a significant foreign investment in India’s glass-manufacturing sector, though not among the largest FDI inflows overall.
The workers’ body claims ECL may be acting in coordination with certain parties, including a failed resolution applicant, to derail the resolution process and push HNGIL into liquidation. They argue such a move would eliminate a major player in the domestic container glass market, benefitting competitors at the expense of thousands of employees.
These concerns come against the backdrop of ongoing investigations into ECL’s financial practices. Justice Gauba, who was appointed by the National Company Law Appellate Tribunal (NCLAT) as an Observer/Administrator, has flagged financial irregularities at the company. A recent media report has highlighted questionable loan transactions and governance issues at ECL, involving its directors Satya Bagla, Achal Jindal, and Abraham.
In response to the union’s representation, Justice Gauba has written to ECL’s directors, demanding full disclosure of information. He noted that previous requests for details had not been adequately addressed and asked for immediate compliance.
These developments follow the Supreme Court’s January 29 ruling, which rejected the resolution plan of AGI Greenpac and directed that the resolution plan submitted by Independent Sugar Corporation Ltd. — a Madhvani Group company — be implemented. The Court dismissed review petitions filed by ECL and AGI Greenpac in May 2025.
Despite this, the union alleges that ECL continues to participate in legal proceedings that may delay implementation of the Supreme Court’s direction, potentially risking liquidation. The final resolution of HNGIL, pending for over four years, remains under close scrutiny.