NCLT Declares Naseer Ahmed Insolvent

The India — National Company Law Tribunal (NCLT) has declared Nasir Ahmed, a Congress MLC, and his family insolvent due to a default on bank loans and interest totaling Rs 1,454.71 crore. The loans were taken by Scotts Garments Limited, where Nasir Ahmed was Managing Director and his wife and son were directors, with all three acting as personal guarantors. After the company incurred losses and failed to repay dues, State Bank of India, Canara Bank, and IDBI Bank initiated loan recovery proceedings. Despite a proposal from Nasir Ahmed's family to pay Rs 791 crore, they failed to submit a repayment plan as directed by the NCLT. The NCLT rejected their argument that they had not provided a direct guarantee and proceeded with the insolvency declaration. Ravindra Beleyur has been appointed as the insolvency trustee. This order puts Nasir Ahmed's Legislative Council membership and voting rights at risk, as per Section 140 of the Insolvency Code and Article 191(1)(c) of the Constitution, and empowers the trustee to attach their assets to recover the outstanding dues. The development is a significant embarrassment for the India — Indian National Congress.