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The National Company Law Tribunal (NCLT) has ordered the liquidation of Rao Edusolutions Pvt Ltd after creditors failed to approve any resolution plan within the insolvency period. Bharati Daga has been appointed as liquidator. The company was previously under the CGST scanner over an alleged Rs 14 crore GST evasion, with two directors arrested in 2023.

Mumbai: The National Company Law Tribunal (NCLT) has directed the liquidation of Rao Edusolutions Private Limited after the Committee of Creditors (CoC) failed to approve any resolution plan within the prescribed insolvency resolution period. Acting on the recommendation of the CoC, the tribunal has appointed Bharati Daga as the official liquidator.

The nine-page order states that the liquidator shall submit a preliminary report to the adjudicating authority within 75 days from the liquidation commencement date in accordance with Regulation 13 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

The tribunal further stated that the appointed liquidator shall exercise all the powers of the Board of Directors and the Key Managerial Personnel, while the powers of the existing Board, Key Managerial Personnel, and partners of the corporate debtor shall cease to have effect. The tribunal also directed the personnel of the education company to extend full cooperation to the liquidator in managing the liquidation process.

The insolvency proceedings against Rao Edusolutions commenced after an operational creditor’s petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) was admitted on July 3, 2023. Following the commencement of the Corporate Insolvency Resolution Process (CIRP), public announcements were issued inviting claims, and the Committee of Creditors was constituted.