SBI initiates insolvency proceedings against Bajaj Hindusthan Sugar

SBI initiates insolvency proceedings against Bajaj Hindusthan Sugar

The State Bank of India (SBI) has initiated insolvency proceedings against Bajaj Hindusthan Sugar in the National Company Law Tribunal (NCLT), Allahabad bench.

"We understand that State Bank of India, financial creditor through its advocate has initiated Corporate Insolvency Resolution Process of Bajaj Hindusthan Sugar Limited before the Hon'ble National Company Law Tribunal, Allahabad Bench under Section 7 of Insolvency and Bankruptcy Code 2016. This disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the company statement read.

The petition was filed in pursuant to a default on account of Bajaj Hindusthan Sugar of a debt of around ₹4,800 crore to banks such as the SBI, Punjab National Bank, Indian Bank and Central Bank of India.

Last month, a penalty of ₹10 lakh was imposed by Securities and Exchange Board of India (SEBI) on Bajaj Hindusthan Sugar capital markets for not disclosing closure orders with respect to its certain distilleries and imposition of penalty by Central Pollution Control Board. The company has been directed to pay the fine within 45 days, the Securities and Exchange Board of India (SEBI) order read.