NCLT Orders Liquidation Of Shreem Corporation After SBI Rejects All Resolution Plans

Mumbai: The National Company Law Tribunal has ordered the liquidation of Shreem Corporation Limited after the committee of creditors (CoC) rejected all resolution plans submitted during the corporate insolvency resolution process (CIRP).

Shreem Corporation Limited, formerly known as Rajput Retail Ltd, had earlier figured in an alleged high-profile bank fraud investigation by the Central Bureau of Investigation. According to media reports from 2018, the company was among six associate firms of the Vindhyavasini group investigated in connection with an alleged bank fraud case involving loans from State Bank of India. The group companies included Vindhyavasini Corporation Pvt Ltd, Vindhyavasini Ispat Industries, Vindhyavasini Steel Product Pvt Ltd, Vindhyavasini Steel Corporation Pvt Ltd and Vindhyavasini Toll Infrastructure Pvt Ltd. Of these, Shreem Corporation reportedly had the highest debt exposure of around Rs 283 crore.

In 2018, the investigating agency chargesheeted Rajput Retails (now Shreem Corporation), its promoters Vijay Gupta and Ajay Gupta, along with SBI official V.N. Kadam and others, alleging that the accused cheated the bank.

According to the Enforcement Directorate, the currency investigating agency, “The accused, Vijay and Ajay Gupta, promoters of Vindhyavasini Group, had allegedly availed credit facilities through multiple companies between 2010 and 2013. As per ED, Shah had allegedly received Rs155 crore from Rajput Retail Ltd. for selling two and a half floors in The Ruby, with funds diverted into shortterm deposits earning interest.

Meanwhile, the insolvency proceedings against Shreem Corporation commenced on September 22, 2021, after SBI initiated proceedings under Section 7 of the IBC. The tribunal-appointed interim resolution professional subsequently issued a public announcement inviting claims from creditors in October 2021.

The resolution professional, meanwhile had moved the Bombay High Court seeking possession of the corporate debtor’s properties. In September 2024, the High Court directed the Sheriff to remove attachment from portions of the property and hand over possession to the RP.

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Subsequently, expressions of interest were invited in September 2024, attracting eight prospective resolution applicants, of which three submitted resolution plans. However, the plans failed to secure approval from the CoC. SBI, holding a 95.63 per cent voting share, voted against both plans.

While ordering liquidation, the tribunal observed: “It is noted that the CoC has voted against both the Resolution Plans submitted by the Prospective Resolution Applicants and the CoC in its 25th meeting dated 05.05.2025, passed resolution for initiation of liquidation process of the Corporate Debtor.”

The bench further held that since there was no approved resolution plan before it and the CoC had resolved with the requisite majority to liquidate the company, the provisions of Section 33 of the IBC were clearly attracted, leaving the tribunal with “no option except to pass an order for liquidation.”

The tribunal appointed insolvency professional Ms. Ritu Rastogi as the liquidator to conduct the liquidation proceedings under Chapter III of the IBC. It also ordered commencement of a fresh moratorium and directed all officers, employees and personnel of the corporate debtor to cooperate with the liquidator.

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