Alok Sanghi, former promoter of Sanghi Industries, has withdrawn his plea before the appellate tribunal, NCLAT, against Ambuja Cements following the settlement of a dispute with the country's second-largest cement manufacturer. According to reports from Business Standard and Devdiscourse, the withdrawal has brought the litigation between the two over Sanghi's personal guarantee of ₹84 crore to a close. Ambuja Cements, which acquired Sanghi Industries in 2023 in a ₹5,185 crore deal, has already withdrawn its plea against Alok Sanghi filed before the Ahmedabad bench of the National Company Law Tribunal (NCLT) on April 10, 2026.
Sanghi had moved the appellate tribunal, NCLAT, challenging an NCLT order passed in November 2025 on Ambuja Cements' insolvency plea regarding the personal guarantee of ₹84 crore extended by him. As reported by Business Standard and Devdiscourse, the NCLT had appointed an interim resolution professional after the plea. Earlier in April, the appellate tribunal was informed that a settlement had been arrived at between Sanghi and Ambuja Cements, following which the Adani Group firm moved an application before the NCLT seeking withdrawal of its Section 95 plea under the IBC. Sanghi contested Ambuja's insolvency actions, arguing that his acquisition agreement solely encompassed warranties and indemnities, excluding any personal guarantee.
On May 26, counsel appearing for Sanghi sought permission to withdraw the petition before the NCLAT, which was allowed. According to Business Standard and Devdiscourse, a two-member NCLAT bench recorded the statement of the learned counsel for the appellant, stating that he was withdrawing the appeal. The bench dismissed the appeal as withdrawn, bringing the legal proceedings to a formal close. This resolution brings an end to proceedings that included appeals and counterclaims concerning an alleged guarantee linked to Sanghi Industries' acquisition.
Ambuja Cements completed the acquisition of Sanghi Industries in December 2023 as part of a ₹5,185 crore deal. As reported by Business Standard and Devdiscourse, in August 2023, Ambuja Cements entered into a share purchase agreement to acquire Sanghi Industries from its promoters, followed by an open offer. The Sanghi family provided indemnities to the acquirer as part of the transaction. However, a dispute arose on an unpaid electricity bill, and they failed to get any relief. As Sanghi Industries could not clear its liabilities, Ambuja Cements invoked Sanghi's personal guarantee and demanded ₹84 crore. The conflict primarily centered on this unpaid electricity bill that led Ambuja to invoke Sanghi's personal guarantee.
