Housing Development Finance Corporation Ltd (HDFC) has moved the NCLT insolvency court against the country’s leading multi-system operator, SITI Networks Ltd, for an alleged default of Rs 296 crore. SITI Networks has received an opinion issued by the Mumbai bench of the National Company Law Tribunal regarding the motion filed by HDFCL, the Essel Group company said in a regulatory filing on Thursday.
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“The company received notice of said matter on April 13, 2022,” the Essel Group company said, adding that it was “compiling information to verify the facts alleged in said petition filed by HDFC.” HDFC, in the petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), claimed a total default of Rs 296.06 crore, in respect of the financial facility it has provided.
“In the said petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read together with Rule 4 of the Insolvency and Bankruptcy Rules, 2016, HDFC allegedly asserted that the aggregate amount in default in this regarding the financial facility is Rs 296,06,48,008/- as of 31st January 2022,” he said. Earlier on March 30, 2022, SITI Networks advised exchanges that it had been made aware of a petition filed in the NCLT by HDFC.
SITI Networks, formerly known as SITI Cable Network, is part of the Essel Group. It provides its cable services in 580 locations and adjacent areas, reaching more than 11.3 million digital customers.