Hyderabad: National Company Law Tribunal notices to Indu guarantors

HYDERABAD: Stating that insolvency proceedings against individual guarantors too can be initiated,

National Company Law Tribunal

(

NCLT

), Hyderabad, has issued notices to

Indukuri Syam Prasad Reddy

, and three others who stood as guarantors for the loans availed by

Indu Projects

.

The firm went bankrupt and the lender bank filed petition seeking initiation of insolvency process against the guarantors.

If the tribunal allows the plea, then personal assets of the guarantors will be liable for confiscation. Syam Prasad Reddy availed Rs 3,000 crore from banks as loans in the name of

Indu

Projects. The banks were initiating action against it at NCLT, while some banks were proceeding against guarantors. —Sagar Kumar Mutha