Surat News : Nakoda Limited Faces E-Auction of Assets Under Insolvency Proceedings

Surat : Nakoda Limited, a prominent manufacturer of polyester chips, yarns, and other textile products based in Surat’s Mandvi taluka, is set to undergo an e-auction of its assets. The move comes under the Insolvency and Bankruptcy Code (IBC), 2016, following an order by the Ahmedabad bench of the National Company Law Tribunal (NCLT).

Nakoda Limited (liquidation) is owned by the Jain brothers—Babulal Jain and Devender Jain—who faced money laundering case in connection of defrauding about 13 banks to the tune of Rs 2,107 crore. The Jain brothers availed RS 2,107 Crore as loan from a consortium of 13 banks, led by Canara Bank, allegedly through fake invoice and document.

As per a notice issued by Ravindra Kumar Goyal, the appointed liquidator for Nakoda Limited, the e-auction for the company’s assets is scheduled for May 6, 2024. The assets on the block include the company’s Surat manufacturing plant (comprising both Phase-1 and Phase-2 units), estimated to be worth Rs 206 crore. Additionally, a residential flat in Surat valued at Rs 13.77 lakh and nine windmills located in Tamil Nadu with a combined value of Rs 6.41 crore will also be part of the e-auction.

The NCLT’s Ahmedabad bench had previously ordered the liquidation of Nakoda Limited and appointed Mr. Goyal as the official liquidator. In accordance with the IBC, Mr. Goyal is now entrusted with managing the company’s affairs, business, and property. He acts solely as an agent for the company and does not incur any personal liability, as authorized under the provisions of the Insolvency and Bankruptcy Code, 2016.

It’s important to note that Nakoda Limited’s manufacturing units are situated in Karanj, which falls under the Mandvi taluka of Surat district. The e-auction of these assets signifies a significant development for the company and its stakeholders, and the coming weeks may see increased activity as the auction date approaches.