Mumbai : The National Company Law Tribunal (NCLT) on Monday admitted an insolvency plea filed by Andhra Bank against Sterling Biotech, seeking recovery of Rs 4,000 crore in dues.
A consortium led by Andhra Bank had given loans of over Rs 5,000 crore to the group. Sterling Biotech is being probed by CBI and Enforcement Directorate (ED) for alleged fraud, and promoters of the company have fled the country.
In December, Andhra Bank had reported to RBI a Rs 515 crore fraud by Sterlite group companies, alleging diversion of funds and money laundering. The Enforcement Directorate, in March, filed a chargesheet against Anup Prakash Garg, former director of Andhra Bank, in relation to the fraud involving Sterling Biotech and directors of the company.
