Sanghi Industries former promoter, Alok Sanghi, moved to the appellate court, challenging the NCLT’s previous order, which started an insolvency proceeding against him as a personal guarantor for a default worth Rs 843 crore
Gautam Adani-led Ambuja Cements has received a notice from the National Company Law Appellate Tribunal (NCLAT) after a plea was filed by former promoter of Sanghi Industries, Alok Sanghi. The NCLAT bench headed by Ashok Bhushan has given interim relief to the former promoter by restricting the appointed interim resolution professional (IRP) Sumit Ranjkanth from taking any steps until the matter is heard again by the appellate tribunal on April 14.
Sanghi Industries was acquired by the Adani Group-owned Ambuja Cements in 2023 to cement the port-to-power conglomerate’s position in the segment.
The development comes after Sanghi moved to the appellate court, challenging the National Company Law Tribunal (NCLT) previous order, which started an insolvency proceeding against him as a personal guarantor for a default worth Rs 843 crore. Prior to this, Ambuja Cement submitted a plea to NCLT’s Ahmedabad bench arguing that Alok Sanghi had personally guaranteed to take care of liabilities of Sanghi Industries but failed to fulfill the responsibility when the cement company defaulted.
To strengthen its position in the cement industry, Adani Group in 2023 entered a share purchase agreement to acquire a Gujarat-based Sanghi Industries from its shareholders, including promoter Alok Sanghi. One of the conditions of the deal was that Sanghi and other shareholders would have to provide warranties, indemnities, and a personal guarantee to cover the Gujarat-based cement company’s financial obligations, including unpaid electricity duty of around Rs 1,619.5 crore.
Sanghi Industries former promoter challenged the Gujarat government’s order to pay the electricity duty and moved to the state’s high court. However, the tax department of the state maintained its position and ordered Sanghi Industries to pay the liability. Due to failure to clear liabilities, Adani Group-owned Ambuja Cements knocked on NCLT’s door and demanded Rs 843 crore from Sanghi Industries, invoking the condition of the personal guarantee under the acquisition deal, and thereafter filed an insolvency petition against Alok Sanghi under the Insolvency and Bankruptcy Code.