The National Company Law Appellate Tribunal (NCLAT) has delivered a landmark ruling quashing insolvency proceedings against Ligare Aviation Ltd, establishing important precedents for future cases. In a strongly worded order passed on May 27, 2026, the appellate tribunal held that the NCLT erred in admitting the plea filed by Religare Enterprises without properly examining the nature of underlying transactions. The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, observed that the transactions were 'only round tripping of money' and not 'any genuine financial transaction' capable of triggering insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The tribunal noted that 'the materials on the record clearly proves that there was no financial debt which was disbursed by Financial Creditor (Religare Finvest) to the Corporate Debtor (Ligare Aviation) for time value of money'.
The NCLAT's detailed analysis revealed that ₹3.6 crore transferred by Religare Arts Investment Management Ltd (RAIML) to Ligare Aviation on March 31, 2009 was immediately remitted to Religare Finvest, a subsidiary company of Religare Enterprises. According to the tribunal's findings, the MoU for loan was a 'sham one-pager document created dishonestly' to give the appearance of genuine transactions to fraudulent activities. The NCLAT noted that bank transfers of March 31, 2009 indicate various amounts received from different group companies and transmitted to other group companies on the same day, demonstrating the interconnected nature of the transactions. The tribunal concluded that 'there was no financial debt which was disbursed by Financial Creditor (Religare Finvest) to the Corporate Debtor (Ligare Aviation) for time value of money'.
Sammaan Capital Ltd. issued a comprehensive denial of allegations made by its former promoter Sameer Gehlaut, stating that the alleged irregularities are 'unsubstantiated'. According to reports from Essential Business Intelligence, the NBFC clarified that Gehlaut had exited the company in 2022-23 and does not hold any shares in the company. The company emphasized that it has no promoter entity and counts marquee investors like BlackRock Inc and Life Insurance Corporation of India as shareholders. Sammaan Capital stated that all allegations against the company have been investigated by RBI, NHB, MCA, SEBI, ED, CBI, and EOW without substantiation.
The Supreme Court reportedly questioned the 'friendly approach' of the Central Bureau of Investigation in its probe of the NBFC. As reported by Essential Business Intelligence, the apex court heard a plea by Citizens Whistle Blower Forum seeking investigation into alleged irregularities by the NBFC's promoters, including round-tripping of capital, violations of Companies Act provisions, and siphoning of funds. The court pulled up the CBI, Ministry of Corporate Affairs, and SEBI for what it viewed as reluctance and inconsistency in pursuing the case. The three-member bench expressed concerns about the pace and seriousness of the probe, especially considering the nature of the allegations.
The Supreme Court has instructed senior officers of CBI, Enforcement Directorate, Serious Fraud Investigation Office, and SEBI to convene a joint meeting within two weeks to examine the issues of irregularities raised by the petitioner. According to reports from Essential Business Intelligence, the court granted SEBI jurisdiction to investigate, calling out what it termed 'double standards' in the market regulator's approach. The court stated there was no reason for SEBI to delay action in a case involving alleged financial misdoings and investor harm. Mukul Rohatgi, Senior Advocate and counsel for Sammaan Capital, stated the company has 'no objection to this process' and is 'fully open to any inquiry'.
Shares of Sammaan Capital settled 12.5% lower at ₹159.75 apiece on the BSE, compared to a 0.6% advance in the benchmark Sensex. As reported by Essential Business Intelligence, the stock has risen 4% so far this year. The matter is scheduled for next hearing on December 17, by which time the company expects full clarity on the investigation process. The NCLAT's ruling on insolvency proceedings adds another layer of regulatory scrutiny to the company's ongoing legal challenges, while the Ligare Aviation precedent establishes important legal principles for future insolvency cases involving round-tripping schemes.
