Essel Group company Shirpur Gold admitted for insolvency

Subhash Chandra-promoted Essel Group's Shirpur Gold Refinery Limited (SGRL) has been admitted for corporate insolvency resolution.

The development follows an application filed by Prudent ARC at the Mumbai bench of the National Company Law Tribunal (NCLT) after SGRL defaulted on dues of about ₹92 crore.

To secure a ₹65-crore loan, SGRL had given an undertaking to Industrial Finance Corporation of India (IFCI) that it would maintain its own excess shares besides those of Zee Media, Zee Entertainment (both promoted by Essel Group) and Dish TV India (which is under Chandra's younger brother) to the extent of ₹32.50 crore.


The outstanding dues include a principal amount of ₹65 crore along with accumulated interest of ₹27 crore up to October 14, 2021.

For the corporate insolvency resolution process (CIRP), the tribunal has appointed Ashish Vyas as the interim resolution professional (IRP). "The financial creditor has thus successfully demonstrated and proved the debt and default in this case," said the division bench in its order dated June 24.

The bench has a judicial member, KR Saji Kumar, and a technical member, Sanjiv Dutt.

"It is noted that the corporate debtor (SGRL) has admitted the outstanding debt. Therefore, we are of the considered view that this application is complete and satisfies all the requirements for admission under Section 7 of the IBC," said the bench.

In April 2023, securities market regulator Sebi had issued an interim order-cum-show-cause notice against SGRL, its erstwhile chairman Amit Goenka, promoter Jayneer Infrapower, and Multiventures for allegedly diverting funds from the company to promoter firms.