NCLT Orders Recovery Of ₹29.35 Crore In Satra Properties Insolvency, Holds Transaction Fraudulent Under IBC

Mumbai, July 14, 2026: The National Company Law Tribunal (NCLT), Mumbai Bench-I, has ordered the recovery of Rs 29.35 crore from Dev Land & Housing Pvt. Ltd. and certain former directors of Satra Properties India Ltd., holding that the forfeiture of the amount formed part of a fraudulent transaction that prejudiced the interests of the company’s creditors.

The direction was issued in proceedings initiated by Resolution Professional Vaishali Patrikar under Section 66 of the Insolvency and Bankruptcy Code (IBC).

“NCLAT has returned a categorical finding that Respondent Dev Land & Housing Pvt. Ltd. is inter se related by the common directorship of Vijay T. Thakkar and the transaction falls squarely under Section 66 of the Code and is to be treated as fraudulent. Nothing remains at our end for further adjudication in relation to this transaction, as we are bound to follow the findings returned by the NCLAT and its decision based on those findings,” the tribunal observed.

Fraudulent Transaction Examined

The dispute relates to an advance of Rs 29.35 crore paid by Satra Properties between August 2015 and March 2016 towards the proposed purchase of development rights in a property. The amount was subsequently forfeited after the deal failed to materialise.

During the insolvency resolution process, the Resolution Professional challenged the transaction, contending that it was structured in a manner that caused wrongful loss to the corporate debtor and its creditors.

The tribunal noted that the National Company Law Appellate Tribunal (NCLAT), while deciding an appeal against an earlier NCLT order, had already concluded that the transaction satisfied the ingredients of a fraudulent transaction under Section 66 of the IBC. The matter was remitted to the NCLT only for passing appropriate consequential directions.

Recovery Ordered By Tribunal

Referring to the appellate tribunal’s findings, the NCLT observed that the Memorandum of Understanding governing the transaction contained unusually one-sided clauses.

The bench also found that the suspended management of the corporate debtor had made no discernible effort to renegotiate the payment terms, seek additional time, or safeguard the company’s financial interests before allowing the advance to be forfeited.

It further observed that the cancellation deed merely cited unspecified “extraneous reasons” for the failure of the transaction and did not satisfactorily explain the circumstances leading to the forfeiture.

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Rejecting the respondents’ request for a fresh adjudication, the tribunal held that it was bound by the NCLAT’s categorical finding declaring the transaction fraudulent. It consequently directed Dev Land & Housing Pvt. Ltd. and the concerned former directors to restore Rs 29.35 crore to the corporate debtor, together with interest at 18 per cent per annum, so that the amount could be made available for the benefit of creditors.

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