The Ministry of Corporate Affairs (MCA) on April 13 has objected to the decision for Sterling Biotech to come out from the insolvency bankruptcy code (IBC).
The Western Regional Director of the MCA, Manmohan Juneja, moved an application in the National Company Law Tribunal (NCLT) to stop this application as its promoters are absconding.
Juneja filed a detailed affidavit where he mentioned the wrong doings of Sterling Biotech. The MCA’s argument in court, as stated by its legal director Sanjay Shourie, is that the company’s promoters are facing a probe from multiple agencies and that its promoters are out of the net of investigation agencies.
Sterling Biotech took loans of over Rs 5,000 crore from a consortium led by Andhra Bank which had turned into non-performing assets.
Source: MoneyControl, April 15, 2019