The National Company Law Tribunal (NCLT) Mumbai Bench-VI had admitted an insolvency petition filed by Tata Capital Housing Finance Limited against Dharan Infra-EPC Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. However, in a significant development, the company has now settled its outstanding dues and initiated the process to withdraw from the Corporate Insolvency Resolution Process (CIRP).

Settlement and NCLAT Directions

Following the initiation of CIRP, the suspended Board of Directors of Dharan Infra-EPC Limited preferred an appeal before the National Company Law Appellate Tribunal (NCLAT) seeking a stay on the CIRP proceedings. During the claim verification period, the corporate debtor entered into a one-time settlement with Tata Capital Housing Finance Limited and cleared the entire outstanding dues on December 31, 2025.

The NCLAT, through its order dated January 6, 2026, directed the Interim Resolution Professional (IRP) to take appropriate steps in accordance with law, including approaching the NCLT Mumbai Bench by filing an application under Section 12A of the Insolvency and Bankruptcy Code, 2016. The tribunal further directed the IRP to collate the claims received during the CIRP period and clarified that no further actions shall be undertaken in the CIRP meanwhile.

Original Financial Debt and Default

The original petition involved significant financial obligations that had remained unpaid by the corporate debtor. Tata Capital Housing Finance had sanctioned two construction finance facilities to Dharan Infra-EPC Limited - the first facility of ₹35.00 crores was sanctioned via letter dated December 17, 2018, and the second facility of ₹45.00 crores was sanctioned through a letter dated May 20, 2019.

CIRP Withdrawal Process

Pursuant to the NCLAT directions, the IRP has initiated the process of filing an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, before the NCLT Mumbai Bench, seeking withdrawal of the application filed under Section 7 of the Code. This development marks a positive turn for the company, which was formerly known as KBC Global Limited and Karda Construction Limited.

Corporate Background and Compliance

Dharan Infra-EPC Limited, a real estate construction company, has its registered office at 2nd Floor, Gulmohar Status, Above Business Bank, Samarth Nagar, Nashik. The company disclosed this information to stock exchanges in compliance with applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The settlement and subsequent withdrawal process represents a significant positive development for the company, allowing it to potentially resume normal operations without undergoing the complete insolvency resolution process.

Dharan Infra-EPC Limited , formerly known as KBC Global Limited, has successfully executed multiple One-Time Settlement (OTS) agreements as part of its comprehensive financial restructuring strategy. The company has completed settlements with both Central Bank of India and Tata Capital Housing Finance Limited, demonstrating its commitment to resolving outstanding financial obligations.

Recent Settlement with Tata Capital Housing Finance

The company announced that it has cleared the entire outstanding amount in a One-Time Settlement with Tata Capital Housing Finance Limited on December 31, 2025. This latest settlement represents another significant step in the company's ongoing financial restructuring efforts.

Previous Settlement with Central Bank of India

Earlier, the company had secured a ₹4.30 crore One-Time Settlement with Central Bank of India, which included structured payment terms:

Strategic Financial Implications

These settlements represent constructive milestones in Dharan Infra-EPC Limited's ongoing efforts to restructure its financial position and regularize its obligations. The company expects several positive outcomes from these agreements:

• Enhanced Balance Sheet: The settlements are expected to have a favorable impact on the company's financial statements
• Improved Stakeholder Credibility: By addressing financial obligations, the company aims to reinforce trust among stakeholders
• Growth Foundation: These settlements serve as a foundation for improved financial discipline and growth readiness

Current Financial Position and Risk Mitigation

While certain loans remain classified under default, Dharan Infra-EPC Limited has clarified that these loans are entirely secured by collateral. The assessed value of the collateral is approximately double the principal sum of the outstanding facilities, ensuring adequate protection for lenders and mitigating risks to the company's operational and financial integrity.

Ongoing Restructuring Efforts

The company remains in active and constructive dialogue with its lending institutions, continuing to pursue structured solutions for all residual obligations. Dharan Infra-EPC Limited has committed to maintaining transparency and compliance with all applicable disclosure obligations, keeping stock exchanges informed of material developments in its financial restructuring process.

The latest settlement with Tata Capital Housing Finance Limited, signed off by Company Secretary Mayura Marathe, reinforces the company's systematic approach to resolving its financial challenges and moving towards a stronger financial footing.