The National Company Law Tribunal (NCLT) Mumbai Bench-VI has 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. The order was pronounced on December 12, 2025, initiating the Corporate Insolvency Resolution Process (CIRP) for the real estate construction company.

Financial Debt and Default Details

The petition involves significant financial obligations that remained unpaid by the corporate debtor. The key financial parameters of the case are outlined below:

Tata Capital Housing Finance had sanctioned two construction finance facilities to Dharan Infra-EPC Limited. The first facility of ₹35 crores was sanctioned via letter dated December 17, 2018, with an addendum issued on December 15, 2020. The second facility of ₹45 crores was sanctioned through a letter dated May 20, 2019, with an addendum dated March 7, 2022.

CIRP Initiation and Public Announcement

Following the NCLT order, the Interim Resolution Professional (IRP) has issued a formal public announcement under Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The announcement calls upon all creditors of Dharan Infra-EPC Limited to submit their claims with proof.

Corporate Debtor's Response and Disputes

Dharan Infra-EPC Limited, formerly known as Karda Constructions Limited and KBC Global Limited, contested the petition through multiple arguments. The company claimed that it had made payments totaling ₹29.84 crores and disputed the inclusion of certain mortgaged units in the demand notices. The corporate debtor argued that several flat units for which No Objection Certificates (NOCs) were granted and full sale consideration received should not be included in mortgaged assets.

Tribunal's Analysis and Decision

The NCLT Mumbai bench, comprising Hon'ble Shri Nilesh Sharma (Member Judicial) and Hon'ble Shri Sameer Kakar (Member Technical), conducted a comprehensive analysis of the case. The tribunal found that all three statutory conditions for Section 7 admission were satisfied:

The corporate debtor had not disputed the debt amount and had repeatedly acknowledged its liability through settlement proposals and communications. The tribunal noted that the loan account was classified as Non-Performing Asset (NPA) on February 7, 2023, which constituted the date of default.

Creditor Claims Process

The IRP has established a structured process for creditor claims submission. Financial creditors must submit their claims electronically, while other creditors may submit claims in person, by post, or electronically. The public announcement identifies three insolvency professionals as authorized representatives for different classes of creditors:

Moratorium and Administrative Directions

The tribunal has imposed a comprehensive moratorium under Section 14 of IBC, which prohibits institution or continuation of suits and proceedings against the corporate debtor, transfer or disposal of assets, and enforcement of security interests. Tata Capital Housing Finance must deposit ₹3,00,000 with the IRP for initial CIRP costs, and the IRP must submit monthly progress reports to the tribunal.

The order represents a significant development in the insolvency proceedings, with the real estate company now under the resolution process aimed at either revival through a resolution plan or liquidation if no viable proposal emerges.

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.