L&T road project in Gujarat faces insolvency

NEW DELHI: The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency resolution against L&T Halol-Shamlaji Tollway, which had loan repayment defaults of close to Rs 77 crore towards the end of December 2018.
The petition to seek action under the Insolvency & Bankruptcy Code was moved by Oriental Bank of Commerce and will come as an embarrassment for L&T, one of the marquee names in the corporate sector. The road project was being developed by L&T Infrastructure Projects Development Company.
In November, TOI had reported that lenders had attached an NPA tag to L&T’s Chennai-Tada Tollways but the company had denied loan repayment problems with L&T Halol-Shamlaji Tollway, despite banks complaining about it. The company has maintained that a large part of the problem is due to issues related with government agencies, which confronts most road developers in the country.