Archive · 16 Sep 2025
NCLT Case Alleges Fraud in Yes Bank-Suraksha ARC Insolvency
Imagine a company called SLDPL that got into financial trouble.
A director, Mr. Singh, is now saying something fishy happened with SLDPL's loan from Yes Bank and how it ended up with Suraksha ARC.
He claims that Yes Bank might have secretly helped Suraksha buy the debt in a circle, which is against the rules.
He thinks the bank wrongly said SLDPL couldn't pay when it could, and that Suraksha ARC unfairly started a process to take over the company.
Mr. Singh also says the person in charge of the process, Mr. Kadam, didn’t let him see important information.
He wants the court to stop the takeover and give the company back to its board.
A suspended director of SLDPL filed a plea in NCLT against Suraksha ARC.
Singh alleges fraud, irregularities, and violations of regulatory norms in SLDPL's insolvency.
Singh claims Yes Bank indirectly funded Suraksha's acquisition of SLDPL's debt.
Singh alleges that Yes Bank wrongfully classified SLDPL's loan as stressed.
Singh is seeking to annul the insolvency case and restore SLDPL's management control.
- Who
- Lakhminder Dayal Singh (suspended SLDPL director) is bringing the case.
- What
- Singh filed a plea in NCLT alleging fraud and irregularities in the insolvency process of Sapphire Land Development Pvt. Ltd.
- When
- The interim plea was recently filed and is likely to be heard in the coming weeks.
- Where
- The case is being heard at the National Company Law Tribunal (NCLT) in Mumbai.
- Why
- Singh alleges that Yes Bank and Suraksha ARC colluded, and that the insolvency case's foundation is flawed.
Singh's Perspective
Suraksha/Yes Bank Perspective (Unstated)
Validity of Loan Transfer
Singh's Perspective
The loan transfer was not legitimate, but a structured 'circular funding' exercise.
Suraksha/Yes Bank Perspective (Unstated)
The article does not explicitly state the opposing viewpoint, but it would likely argue the loan transfer was legitimate.
Loan Classification
Singh's Perspective
Yes Bank wrongfully classified SLDPL's loan as stressed despite timely repayments.
Suraksha/Yes Bank Perspective (Unstated)
The article does not explicitly state the opposing viewpoint, but it would likely argue that the loan was correctly classified as stressed.
Insolvency Process
Singh's Perspective
Singh alleges the insolvency process initiated by Suraksha ARC is illegitimate.
Suraksha/Yes Bank Perspective (Unstated)
The article does not explicitly state the opposing viewpoint, but it would likely argue that the insolvency process was legitimate.
- Parties Involved
- Yes Bank, Suraksha ARC, SLDPL, Lakhminder Dayal Singh, Snehal Kadam
- Plaintiff
- Lakhminder Dayal Singh (suspended SLDPL director)
- Defendant
- Suraksha ARC
- Allegations
- Fraud, regulatory violations, 'circular funding', loan evergreening
- Legal Venue
- National Company Law Tribunal (NCLT), Mumbai
- Status
- Interim plea filed, case pending hearing