NCLT Orders Ex-Promoters of HNG to Repay Defrauded ₹42 Cr Amount to Debtors

The National Company Law Tribunal (NCLT) has directed the erstwhile promoters of Hindusthan National Glass & Industries Ltd (HNG) to return ₹42.46 crore, misappropriated by them, to corporate debtors within two months.

The Kolkata bench of the NCLT also ordered the Resolution Professional of the debt-ridden company to institute criminal prosecution against suspended directors Sanjay Somany and Mukul Somany under Section 69 of the Insolvency and Bankruptcy Code.

The tribunal found the transactions of ₹42.46 crore were made with the intent to defraud creditors and ordered repayment within two months, failing which recovery will be made from their properties, the order said.

The order, dated September 12, came on an application filed by the Resolution Professional (RP) of HNG, Girish Juneja, following a transaction audit by BDO India.

Transactions auditor BDO India has detected three potentially fraudulent or wrongful transactions worth ₹63.34 crore under the erstwhile management of Hindusthan National Glass & Industries Ltd (HNG) during the three financial years 2019-20 to 2021-22.

The audit highlighted suspect payments between FY20 and FY22, including ₹15.10 crore to Rafbrix International, ₹5.78 crore to Maithan Ceramic Ltd, and ₹42.46 crore to Durvish Vyapaar Pvt Ltd.

The tribunal said the Durvish Vyapaar transactions represented fraudulent diversion of funds, with the company having no valid office, invoices, or evidence of procurement.

"The misappropriation was done with the intent to defraud creditors," the bench observed, while directing criminal proceedings under Section 69 of the IBC.

"Additionally, the applicant is also directed to institute a criminal prosecution under Section 69 of IBC, 2016, in accordance with the provisions of law against the Respondent," the order said.

Debt-ridden HNG was admitted for resolution by the National Company Law Tribunal (NCLT) in October 2021 following a petition by lenders.

In August 2025, the NCLT's Kolkata bench approved the resolution plan submitted by Independent Sugar Corporation Ltd (INSCO) for the revival of HNG following the Supreme Court direction.

At the end of this 45-day monitoring phase, complete control of HNG will pass on to the Madhvani Group. The Monitoring Committee will step down, and a new board nominated by the Group will take charge.

According to the NCLT order, the resolution plan involves a total investment of ₹2,250 crore, comprising ₹1,900 crore in upfront cash, ₹350 crore deferred over three years to CoC and a 5% equity to creditors.