Ballarpur Industries Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
Awaiting price reaction for this filing.
Ballarpur Industries Limited (BILT) and its Dutch subsidiary, Ballarpur International Holdings B.V., have received summons from the Chief Judicial Magistrate, Rouse Avenue District Courts, New Delhi, to appear as accused (A-1 and A-2) in a CBI case. The underlying FIR (RC 219/2023/E0007) was filed under IPC sections covering criminal conspiracy (120B), criminal breach of trust (409), and receiving stolen property (411). The next hearing is scheduled for August 12, 2025. The company states there will be no financial impact, as the alleged offences occurred before its Corporate Insolvency Resolution Process (CIRP), and under Section 32A of the IBC, 2016, such pre-CIRP liability ceases once the resolution plan is approved. The resolution plan was approved by NCLT Mumbai on January 10, 2023.
While the summons involve serious criminal charges of conspiracy and breach of trust, the company is relying on Section 32A of the IBC to shield itself from liability. Investors should monitor the August 12 hearing closely, though management's stance suggests limited financial risk to the company at this stage.