NCLT orders insolvency for tollway firm over Rs 284 crore Canara Bank default
The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Supreme Ahmednagar Karmala Tembhurni Tollways Private Limited. The move follows a petition filed by Canara Bank over an unpaid loan of Rs 283.95 crore. The default traces back to December 2015, linked to a key road project in Maharashtra.
The insolvency case centres on a Rs 405 crore credit facility extended by a consortium of lenders, led by Punjab National Bank. Canara Bank alone contributed Rs 100 crore, later adding another Rs 10.7 crore. The NCLT rejected the company's claim that its liabilities had shifted to Kalyan Toll Infrastructure Limited, ruling that the borrower's obligation to pay interest remained intact under RBI norms.
The default originated from the Mumbai-Nagpur Samruddhi Mahamarg project, which faced delays and cost overruns. Initially budgeted at ₹26,000 crore, expenses have now surpassed ₹55,000 crore. Despite these challenges, construction has advanced under the Maharashtra State Road Development Corporation (MSRDC), with 75% completion by 2023. Partial sections opened in 2021, and full operations are expected by 2025, supported by restructured financing from lenders like IDFC and ongoing government funding. Canara Bank's petition, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), marks the formal start of the Corporate Insolvency Resolution Process (CIRP). The NCLT's decision underscores that financial restructuring and improved project progress do not absolve the company of its repayment duties.
The insolvency process will now determine the next steps for Supreme Ahmednagar Karmala Tembhurni Tollways. Creditors, including Canara Bank, will seek recovery of the Rs 283.95 crore default. Meanwhile, the Mumbai-Nagpur expressway continues toward completion, with full operations slated for 2025.
