Parsvnath Developers director moves NCLAT against co's insolvency admission
This story was originally published at 19:42 IST on 18 May 2026
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NEW DELHI – Sanjeev Kumar Jain, the suspended director of Parsvnath Developers Ltd., has moved the National Company Law Appellate Tribunal, challenging the admission of insolvency against the company. The appellate tribunal will hear Jain's plea on May 21.
The Delhi bench of the National Company Law Tribunal had last month admitted Asset Reconstruction Co. (India) Ltd.'s insolvency petition against Parsvnath Developers. The suspended director of the company has moved the appellate tribunal, challenging the Delhi tribunal's order.
Parsvnath Developers had taken a loan from Sammaan Capital Ltd. in 2018 for the construction and development of housing projects. Samman Capital moved the National Company Law Tribunal to start insolvency proceedings against Parsvnath Developers after the company failed to repay the debt. Samma Capital later sold the loan to Asset Reconstruction Co.
Opposing insolvency proceedings in the NCLT, Parsvnath Developers had said that discussions were ongoing between the parties regarding the reconciliation of loan accounts. Parsvnath Developers had also alleged that the lender was acting on its own whims and fancies and had been arbitrarily foreclosing loan accounts without providing any information.
Parsvnath Developers said there is a dispute regarding its liability to Asset Reconstruction Co. and sought reconciliation of all loan accounts, taking into account the upfront amounts and interest paid by it. Parsvnath Developers also sought the refund of the excessive amount paid by it and its group companies to Asset Reconstruction Co.
Towards repayment of the disbursed amount of INR 41.53 billion, an amount of INR 46.96 billion has already been paid by the company and its group companies, which includes interest amounting to INR 10.06 billion, Parsvnath Developers claimed. Parsvnath Developers and its group of companies were still required to pay INR 4.89 billion. However, if the loan accounts are reconciled and the refund is given by Asset Reconstruction, then there will be no amount left to pay, Parsvnath Developers claimed.
Monday, shares of Parsvnath Developers ended 5% lower at INR 5.13 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Saji George Titus
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