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The National Company Law Tribunal (NCLT) Kolkata bench recently mandated insolvency proceedings against Fort Projects (P) Ltd, responding to a complaint from Emami Realty. A part of the Fort Group, a prominent real estate entity in Kolkata, Fort Projects faces insolvency claims totaling Rs 91 crore, with Emami Realty asserting a principal amount of Rs 82 crore and the remainder as interest. The NCLT order appoints Kannan Tiruvengadam as the interim resolution professional for the Corporate Insolvency Resolution Process (CIRP) of Fort Projects. Emami Realty, an affiliate of the Emami Group with significant projects throughout Kolkata, filed a complaint under Section 7 of the Insolvency & Bankruptcy Code, 2016. The NCLT's decision acknowledges Emami Realty's claims and initiates the Corporate Insolvency Resolution Process for Fort Projects. Fort Projects, renowned for its real estate ventures in south Kolkata, including prominent projects like Fort Knox, had sought financial support from Emami Realty in conjunction with Gagan Dealcom Private Limited. The purpose was to fund various developmental projects in the real estate sector. The total default claimed by Emami Realty is Rs 91 crore, comprising Rs 82 crore as principal and over Rs 9 crore as interest. The loan agreement, dating back to February 2016, involved Fort Projects, Gagan Dealcom, and 70 additional co-owners/corporate guarantors, collectively approaching Emami Realty for a financial accommodation of Rs 70 crore. According to the agreement terms, the interest rate was to be determined by the chairman of Emami Group, with the chairman's decision deemed final and binding on the borrowers. The agreement stipulated repayment within nine months from the agreement's execution date, inclusive of interest. This development underscores the financial challenges faced by Fort Projects and the consequential legal actions taken by Emami Realty to recover the outstanding amounts. The appointment of an interim resolution professional signals the commencement of the Corporate Insolvency Resolution Process, highlighting the complex dynamics within the real estate sector and the legal mechanisms in place to address financial disputes and insolvency issues.
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