Dharan Infra-EPC Limited has made significant progress in resolving its Corporate Insolvency Resolution Process (CIRP) after successfully settling outstanding dues with its financial creditor. The company, formerly known as KBC Global Limited and Karda Construction Limited, has cleared all payments and is now seeking formal withdrawal of the insolvency proceedings.

Settlement with Financial Creditor

The company entered into a one-time settlement agreement with Tata Capital Housing Finance Limited, the original financial creditor, during the claim verification period. The settlement was completed with full payment of outstanding dues on December 31, 2025.

NCLAT Directions and Legal Proceedings

The National Company Law Appellate Tribunal issued crucial directions on January 6, 2026, following the successful settlement. The tribunal was apprised of the facts and circumstances surrounding the case, including the complete payment to the financial creditor.

The NCLAT's order included specific directions for the Interim Resolution Professional (IRP):

• File an application under Section 12A of the Insolvency and Bankruptcy Code, 2016
• Approach the National Company Law Tribunal, Mumbai Bench
• Collate claims received during the CIRP period
• Suspend further actions in the CIRP proceedings

Current Status and Next Steps

Following the tribunal's directions, the Interim Resolution Professional has initiated the process of filing an application under Section 12A before the NCLT Mumbai Bench. This application seeks withdrawal of the original Section 7 application that initiated the insolvency proceedings.

Regulatory Compliance

The company has disclosed this development in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made on January 20, 2026, keeping stakeholders informed about the significant progress in resolving the insolvency proceedings.

The resolution professional has received Form FA from the financial creditor, confirming the settlement and payment completion. Meanwhile, several interveners have been granted liberty to file intervention applications within a week of the January 6, 2026 order, with some claims already accepted by the resolution professional.

Company Background

Dharan Infra-EPC Limited, previously operating under the names KBC Global Limited and Karda Construction Limited, is listed on both NSE (symbol: DHARAN) and BSE (script code: 541161). The company's registered office is located in Nashik, Maharashtra, with its corporate office also situated in the same city.

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.