BDO India detected three potentially fraudulent or wrongful transactions worth ₹63.34 crore under HNG’s erstwhile management during FY 2019-20 to 2021-22.
The entities involved are Rafbrix International (₹15.10 crore), Maithan Ceramic Ltd (₹5.78 crore), and Durvish Vyapaar Pvt Ltd (₹42.46 crore).
Rafbrix International’s outstanding advances of ₹15.10 crore are classified as potential diversion of funds under section 66 of the IBC.
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 three entities reportedly involved in the fraudulent or wrongful trading are Rafbrix International (₹15.10 crore), Maithan Ceramic Ltd (₹5.78 crore), and Durvish Vyapaar Pvt Ltd (₹42.46 crore), as per the report submitted to NCLT as part of the resolution process of the debt-ridden company.
The auditor in its report said it is concluded that outstanding advances amounting to ₹15.10 crores, Rafbrix International, is a potential diversion of funds and the same can be classified under section 66 of the Insolvency and Bankruptcy Code (IBC) as 'fraudulent or wrongful trading'.
A similar observation was made in the case of HNG trading with Durvish Vyapaar Pvt Ltd (₹42.46 crore) after negative physical site visit, absence of basis for selection of the vendor, absence of adequate supporting documents, and absence of rationale for procuring material at a higher rate.
The forensic review has been conducted as part of the corporate insolvency resolution process (CIRP) of HNG, once India's largest glass container manufacturer.
Debt-ridden HNG was admitted for resolution by the National Company Law Tribunal (NCLT) in October 2021 following a petition by lenders. Following the approval from the NCLT earlier this month, the Madhvani Group company INSCO has initiated the process of taking over HNG.
On August 14, 2025, the NCLT's Kolkata bench approved the resolution plan submitted by Independent Sugar Corporation Ltd (INSCO) for the revival of HNG.
On June 13, 2025, the Committee of Creditors (CoC) approved the plan with an overwhelming 96.16% majority.
At the end of this 45-day monitoring phase, complete control of HNG will pass 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 plan involves a total investment of ₹2,250 crore, comprising ₹1,900 crore in upfront cash, ₹350 crore deferred over 3 years to CoC and 5% equity to creditors.
As per the resolution plan, the upfront cash will be paid within 30 days of NCLT approval, with additional working capital infusion and equity issuance to CoC members to be completed within 90 days. Further, INSCO has committed ₹1,000 crore in capital expenditure over the coming years to rebuild furnaces and modernise equipment.
