SC flags undervaluation, sham auctions under IBC, seeks probe
Senior advocate Mukul Rohatgi, appearing for Anil Ambani group, said such a sale was a public process, whether the buyer was a brother or anyone else. But the CJI-led bench said, “Unfortunately, IBC proceedings are misused nowadays. The assets of a company in debt are undervalued. Then it is put on a sham auction and, in a planned manner, a family member or a friend buys it.”
Senior advocate Mukul Rohatgi, appearing for Anil Ambani group, said such a sale was a public process, whether the buyer was a brother or anyone else. But the CJI-led bench said, “Unfortunately, IBC proceedings are misused nowadays. The assets of a company in debt are undervalued. Then it is put on a sham auction and, in a planned manner, a family member or a friend buys it.”
