The National Company Law Tribunal (NCLT) in Bengaluru on Tuesday dismissed an insolvency plea filed by Indian Bank against prominent real estate firm Mantri Developers. The plea was filed over a loan default of ₹153 crores.
A bench comprising Judicial Member K Biswal and Technical Member Manoj Kumar Dubey delivered the order.
Background of the Case
Indian Bank initially filed the plea in 2022. However, Mantri Developers was already admitted into the Corporate Insolvency Resolution Process (CIRP) in 2023 on a petition by India Bulls, alleging a default of over ₹500 crores. At that time, the NCLT allowed Indian Bank to intervene in the CIRP process initiated by India Bulls.
Subsequently, Mantri Developers reached a settlement with India Bulls, leading to the withdrawal of the insolvency petition. Following this, the National Company Law Appellate Tribunal (NCLAT) dismissed Indian Bank’s plea, stating, “As a logical corollary, the main CP(IB) No.94/BB/2022… is dismissed.”
Indian Bank later moved the NCLT again to revive its insolvency plea, which was dismissed on Tuesday.
About Mantri Developers
Founded in 1999 by Sushil Mantri, Mantri Developers is a Bengaluru-based real estate company with a presence in cities like Chennai, Pune, and Hyderabad. The company has developed 23 projects spanning 10 million square feet, including iconic developments like Mantri Square Mall and Mantri Pinnacle, South India’s tallest residential tower.
Financial Troubles
Mantri Developers has faced severe financial challenges in recent years, leading to delays in key projects, affecting homebuyers and sparking protests. Reports indicate the company has over ₹1,000 crores in overdue borrowings. Allegations of fund misuse meant for project development have led to non-delivery of properties and legal actions by customers.
In several instances, consumer courts have ruled against Mantri Developers for unfair trade practices, including the termination of agreements without refunds. Recently, the Bangalore Urban Consumer Commission directed the company to compensate a buyer for failing to deliver an apartment.
Representation
Indian Bank was represented by Advocate HR Katti, while Advocate Anish Acharya appeared for Mantri Developers.
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