Fraud by liquidator of corporate debtor alleged before NCLT

Hyderabad: Alleging fraud on the part of the official liquidator of corporate debtor Servomax India Pvt Ltd, a petition was filed on Thursday before the National Company Law Tribunal at Hyderabad.

Petitioner Manne Ekambareswar Rao alleged that the official liquidator appointed in the insolvency resolution process of Servomax — which has debts of around Rs 700 crore to various banks — has been playing fraud and that he is hand-in-glove with the promoter of the insolvent company.

He said the reserve price set for first notice to sell the company as a going concern was Rs 72 crore, wherein the same was decreased by the liquidator to Rs 65 crore and Rs 60 crore as on February 2020.

 “Thereafter, he decided to decrease the reserve price to Rs 54 crore and the same was further decreased Rs 48.6 crore to sell the company. Finally, the quoted price came down to Rs 25.88 crore post realization of sale of some assets.”

The petitioner alleged that the liquidator was trying to hand over the company to some associates of the company’s promoter.