IVRCL's liquidation process takes a hit after bidder defaults on ₹1,200 crore payment

Core Viewpoint - The liquidation process of IVRCL Ltd has been restarted due to the failure of the successful bidder, P Prasad Reddy, to pay the agreed amount of Rs 1,200 crore, highlighting the challenges in recovering dues in the EPC sector [9]. Group 1: Liquidation Process - The National Company Appellate Tribunal (NCLAT) has received an application from banks to restart the liquidation process after Reddy's non-payment [9]. - EY has been appointed as the new liquidating agency, indicating a fresh start for the insolvency process that began in 2017 [9]. - The Hyderabad bench of the National Company Law Tribunal (NCLT) appointed Purusottam Behera as the new liquidator, replacing Sutanu Sinha [9][3]. Group 2: Financial Obligations and Recovery - IVRCL owes creditors over Rs 14,500 crore, with recovery appearing unlikely in the near future [9]. - Reddy had initially paid Rs 150 crore, including Rs 50 crore as an earnest money deposit, but has not made further payments [5]. - Creditors are considering a part-by-part sale of IVRCL's large land assets, particularly in South India, to facilitate some recovery [6]. Group 3: Historical Context - IVRCL was listed among 28 large borrowers on the Reserve Bank of India's (RBI) bad loan accounts sent to bankruptcy courts in 2017 [9]. - The company has faced multiple failed attempts to secure an acceptable resolution plan, leading to the NCLT's order for liquidation in 2019 [9]. - Reddy's consortium was the sole bidder for IVRCL, receiving NCLT approval in June 2022, but has since filed various petitions regarding collateral pledged with banks [9].