Fraudulent Transactions Exposed at Hindusthan National Glass in NCLT Proceedings

BDO India has discovered three potentially fraudulent transactions amounting to Rs 63.34 crore under the former management of Hindusthan National Glass & Industries Ltd (HNG). The transactions reportedly involve Rafbrix International, Maithan Ceramic Ltd, and Durvish Vyapaar Pvt Ltd, as detailed in a report to the National Company Law Tribunal (NCLT).

The investigation highlights a potential diversion of funds with Rafbrix International and concerning dealings with Durvish Vyapaar Pvt Ltd due to discrepancies in vendor selection and the absence of adequate supporting documents. These findings are crucial to the Corporate Insolvency Resolution Process (CIRP) of the distressed company, once India's leading glass container manufacturer.

The NCLT has approved a resolution plan submitted by Independent Sugar Corporation Ltd (INSCO), with a significant majority from the Committee of Creditors. Under this plan, the Madhvani Group will assume control following an investment strategy that includes Rs 2,250 crore in total with further capital commitments aimed at rejuvenating HNG.

(With inputs from agencies.)