Corporate Governance
Investigation

Banks save INR600 crore in claims as Tayal-related entities get booted out of KG Corp

Banks save INR600 crore in claims as Tayal-related entities get booted out of KG Corp

Praveen Kumar Tayal, patriarch of Tayal Group

Synopsis

Three groups of companies connected to Tayal group had created a web of entities interlinked through shareholding, directorships, and fund flows. They used it to capture two-thirds majority of the committee of creditors of KG Corporation, thereby whittling down the influence of lenders PNB, BoI, and UCO Bank.

By
5 mins read,
An elaborate scheme involving numerous shell entities and related parties, devised to capture the control of the committee of creditors (CoC) of a Tayal group company under the Insolvency and bankruptcy code (IBC), has been cut short after three public sector banks won a key judgment at the national company law tribunal (NCLT) earlier this week. Punjab National bank, Bank of India and UCO Bank, which had dues of around INR600 crore in the form

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