NCLT Mumbai Orders Recovery of ₹29.35 Crore in Satra Properties Fraud Case
The National Company Law Tribunal (NCLT) Mumbai Bench-I on July 14, 2026, ordered the recovery of ₹29.35 crore from Dev Land & Housing Pvt. Ltd. and former directors of Satra Properties India Ltd. The tribunal ruled that a past transaction and subsequent forfeiture of the amount was fraudulent under the Insolvency and Bankruptcy Code (IBC).
The recovery order was issued in Mumbai during proceedings initiated by Resolution Professional Vaishali Patrikar under Section 66 of the IBC. The order aims to mitigate the wrongful losses caused to the corporate debtor, Satra Properties, and its creditors.
The dispute originates from an advance of ₹29.35 crore paid by Satra Properties between August 2015 and March 2016. The payment was meant for the proposed purchase of development rights in a property. However, the deal failed to materialise, and the entire amount was subsequently forfeited.
During the insolvency resolution process, Resolution Professional Vaishali Patrikar challenged the transaction. She contended that it was structured to cause wrongful loss to the corporate debtor and its creditors.
The NCLT noted that the National Company Law Appellate Tribunal (NCLAT) had already concluded that the transaction met the criteria of a fraudulent transaction under Section 66 of the IBC. The appellate tribunal found that Dev Land & Housing Pvt. Ltd. was related to Satra Properties through the common directorship of Vijay T. Thakkar.
The NCLT observed that the Memorandum of Understanding governing the transaction contained unusually one-sided clauses. It also found that the suspended management of Satra Properties made no discernible effort to renegotiate the payment terms, seek additional time, or safeguard the company’s financial interests before allowing the advance to be forfeited.
Furthermore, the cancellation deed cited only unspecified "extraneous reasons" for the failure of the transaction and did not satisfactorily explain the circumstances of the forfeiture.
Rejecting the respondents’ request for a fresh adjudication, the NCLT held that it was bound by the NCLAT's earlier findings. The tribunal directed Dev Land & Housing Pvt. Ltd. and the concerned former directors, including Vijay T. Thakkar, to restore the ₹29.35 crore to the corporate debtor. The tribunal also ordered the payment of interest at 18 per cent per annum on the amount to benefit the creditors.
