Insolvency proceedings: Bharati Defence bidders to deposit Rs 100 million

The National Company Law Tribunal’s (NCLT’s) Mumbai Bench directed any entity wishing to bid for Bharati Defence and Infrastructure for Rs 100 million as Earnest Money Deposit (EMD) by October 3, as proof of seriousness to acquire the insolvent firm.

Further, to provide a bank guarantee worth 10 per cent of their bid amount by the same date. This is part of the eligibility criteria for accepting a Resolution Plan.

At present, there are four ‘Resolution Applicants' (RAs), as the term goes. These being ARCS Ship Build Services, Perfect Industries Group Holdings, Edelweiss Asset Reconstruction Company, and Geotech Investment and Holdings.

During the previous hearing, the NCLT bench of B S V Prakash Kumar and Ravikumar Duraisamy had directed the RAs to give their Resolution Plans by September 21.