MUMBAI: Pancard Clubs, with ₹5,034 crore of admitted claims in a bankruptcy resolution, has received three offers from Ashdan Properties, a consortium of Vijay K. Oswal, Shanti Hospitality, and Kantadevi V. Oswal, as well as Chemhub Tradelink.
The company, which develops and operates hotels and resorts, is undergoing an in-court resolution process and more than 1.5 million financial creditors (timeshare subscribers) will be voting on these plans in the next couple of days to decide the successful resolution applicant.
The NCLT had admitted Pancard Clubs for insolvency proceedings last year, with a total admitted claim of ₹5,034 crore as of December 2022, according to the company’s website. Rajesh Sureshchandra Sheth, backed by Deloitte is the resolution professional running the insolvency process.
The resolution professional did not immediately respond to the request for comment.
Recently, the court has approved the condonation of delayed applications for accepting claims beyond 90 days, which means applicants can file their claims after the deadline.
There were eight bidders who were shortlisted including RKG Fund I, Scheme of RKG Trust, Consortium of Vijay K. Oswal, Shanti Hospitality, and Kantadevi V. Oswal, Ashdan Properties Private Limited, KP Advisory Services LLP, Chemhub Tradelink, Midori Realty LLP, Consortium of Sriniwas Developers, Rishabh Jayantilal Oswal, Shamkant Jagannath Shende, and Jayantilal Tarachand Oswal, and Shanti G.D. Ispat & Power. However, out of these, only three have submitted firm resolution plans.
Recently, the Securities Exchange Board of India (Sebi) approached the insolvency tribunal for quashing the insolvency proceedings but later National Company Law Appellate Tribunal (NCLAT) dismissed the regulator’s plea.
The market regulator was investigating the company for running an unregistered collective investment scheme disguised as a timeshare scheme for purchasing room nights in various properties and resorts owned by the company. Sebi had ordered Pancard Clubs to refund ₹7,035 crore to the investors and directed the scheme to be wound up.
Pancard Clubs appealed the order to the Securities Appellate Tribunal (SAT), but SAT upheld Sebi’s decision, leading to recovery proceedings initiated by the regulator. The properties of Pancard Clubs were put up for e-auction but the Bombay High Court stayed the process until further orders.
Meanwhile, the investors filed an application before the NCLT, seeking initiation of the insolvenproceedings and the company was admitted.
