Essel Infra Faces Insolvency on JK Bank's Application
ECONOMY & POLICY

Essel Infra Faces Insolvency on JK Bank's Application

Essel Infraprojects Limited (EIL), the infrastructure arm of Essel Group, is facing insolvency proceedings initiated by Jammu and Kashmir Bank. The bank filed a petition under the Insolvency and Bankruptcy Code (IBC) to recover unpaid dues from EIL. This development adds to the financial struggles of Essel Group, which has been grappling with significant debt across its businesses.

The insolvency application comes after a prolonged period of defaults by Essel Infra in repaying loans taken for various infrastructure projects. The company has been under financial pressure for several years, primarily due to delays in project execution, non-receipt of expected revenue, and a broader economic slowdown affecting the infrastructure sector. These factors have led to liquidity issues, making it difficult for the company to meet its financial obligations.

The National Company Law Tribunal (NCLT) is expected to hear the matter soon, which could lead to the initiation of a corporate insolvency resolution process (CIRP) if the tribunal finds merit in the bank's petition. If the CIRP process begins, Essel Infra will be required to present a resolution plan to settle its outstanding debts or face liquidation.

The insolvency case is a significant setback for Essel Infra, which was once a key player in India's infrastructure sector, involved in various projects across sectors like roads, urban infrastructure, and renewable energy. The financial woes of the company reflect broader challenges in the Indian infrastructure space, where several firms are dealing with heavy debt burdens.

Essel Infraprojects Limited (EIL), the infrastructure arm of Essel Group, is facing insolvency proceedings initiated by Jammu and Kashmir Bank. The bank filed a petition under the Insolvency and Bankruptcy Code (IBC) to recover unpaid dues from EIL. This development adds to the financial struggles of Essel Group, which has been grappling with significant debt across its businesses. The insolvency application comes after a prolonged period of defaults by Essel Infra in repaying loans taken for various infrastructure projects. The company has been under financial pressure for several years, primarily due to delays in project execution, non-receipt of expected revenue, and a broader economic slowdown affecting the infrastructure sector. These factors have led to liquidity issues, making it difficult for the company to meet its financial obligations. The National Company Law Tribunal (NCLT) is expected to hear the matter soon, which could lead to the initiation of a corporate insolvency resolution process (CIRP) if the tribunal finds merit in the bank's petition. If the CIRP process begins, Essel Infra will be required to present a resolution plan to settle its outstanding debts or face liquidation. The insolvency case is a significant setback for Essel Infra, which was once a key player in India's infrastructure sector, involved in various projects across sectors like roads, urban infrastructure, and renewable energy. The financial woes of the company reflect broader challenges in the Indian infrastructure space, where several firms are dealing with heavy debt burdens.

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?