NCLT Orders Ex-Promoters of HNG to Return Misappropriated Funds

The NCLT has ordered former promoters of Hindusthan National Glass & Industries Ltd to repay Rs 42.46 crore misappropriated funds within two months. The tribunal found these transactions fraudulent, prompting criminal proceedings under the Insolvency and Bankruptcy Code. The resolution plan, involving Rs 2,250 crore, was approved to revive the company.

Devdiscourse News Desk | New Delhi | Updated: 13-09-2025 16:43 IST | Created: 13-09-2025 16:43 IST

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The National Company Law Tribunal (NCLT) has mandated the former promoters of Hindusthan National Glass & Industries Ltd (HNG) to repay Rs 42.46 crore to corporate debtors within two months. This follows the discovery of misappropriated transactions aimed at defrauding creditors.

According to the NCLT's Kolkata bench, Resolution Professional Girish Juneja, who initiated the application, will also move for criminal prosecution against suspended directors Sanjay and Mukul Somany under Section 69 of the Insolvency and Bankruptcy Code. This order comes after BDO India's transaction audit revealed fraudulent dealings.

The NCLT oversight highlights questionable financial actions between 2019-2022, including dealings with entities like Rafbrix International and Maithan Ceramic Ltd. A resolution plan, endorsed by Independent Sugar Corporation Ltd (INSCO) and entailing a Rs 2,250 crore investment, aims to restore HNG following the Supreme Court's directive.

(With inputs from agencies.)