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 KBC Global Limited) has reported a standalone net loss of ₹753.21 crores for the quarter ended June 30, compared to ₹1,530.04 crores loss in the previous year quarter. The company continues to face significant regulatory and operational challenges.

Key Financial Highlights

Regulatory and Operational Challenges

FEMA Violations

The company is facing issues related to improper deployment of USD 80.62 million raised through Foreign Currency Convertible Bonds (FCCBs), violating Foreign Exchange Management Act (FEMA) regulations.

Financial Difficulties

• Dharan Infra-EPC Limited is experiencing difficulties in meeting its loan repayment obligations on time.
• The company has not filed GST returns since December 2023, indicating ongoing compliance issues.

Operational Issues

Most of the company's construction sites remain non-operational, significantly impacting its business activities and revenue generation.

Outlook and Challenges

Dharan Infra-EPC Limited faces several critical challenges that require attention:

1. Regulatory Compliance: Resolving the FEMA violations and addressing the GST non-compliance issues.

2. Financial Stability: Addressing persistent losses and improving financial position.

3. Operational Reactivation: Efforts to restart non-operational construction sites.

4. Debt Management: Managing debt effectively and meeting repayment obligations.

While the reduction in quarterly losses compared to the previous year may indicate some improvement, the company still faces substantial hurdles in its path to recovery. Investors and stakeholders may want to monitor the company's efforts to address these challenges, particularly its progress in resolving the regulatory issues and improving operational efficiency.