Punjab and Haryana High Court asks trial court to adjourn proceedings in Educomp case

Punjab and Haryana High Court asks trial court to adjourn proceedings in Educomp case


Mumbai: The Punjab and Haryana High Court has directed the trial court to adjourn proceedings in a case involving Duff and Phelps managing director Aviral Jain, arising from the resolution of the insolvent firm Educomp Infrastructure & School Management (EISML).

“The trial court is directed to adjourn the case qua the petitioner beyond the date fixed by this court,” the HC said in its order.

Jain had urged the HC to quash a chargesheet accusing him and others of financial irregularities.

The Haryana Police had filed a chargesheet against Jain, Educomp’s resolution professional (RP) Ashwini Mehra, and Tarun Bhatia, the managing director of Kroll Associates, following complaints of wrongdoing by those involved in the resolution. ET had reported the development in its edition dated April 28.

The chargesheet was filed following a complaint by VK Dandona (a former director of EISML) alleging wrongdoings by Mehra even as Dandona himself is being probed by the CBI for alleged financial irregularities at Educomp.

Dandona had filed a complaint against Mehra based on inputs provided by a ‘whistleblower’, who alleged conflict of interest.

Dandona alleged that the RP was associated with Duff and Phelps, an affiliate entity of Kroll, which was granted an audit assignment.

Responding to the allegation, Mehra said he was only a senior adviser to Duff and Phelps India.

Mehra also said the appointment of Kroll India, and Duff and Phelps was made after a bid process by the committee of creditors (CoC), and had been approved by them.

“Insolvency and Bankruptcy Board of India noted that fees and relationships among parties are said to be disclosed to the CoC. Hence no question of defrauding creditors or corruption arises,” Mehra said.

According to the resolution professional, the Kroll audit forms the basis of a CBI FIR against Shantanu Prakash, the promoter of Educomp, and VK Dandona.

Tarun Bhatia of Kroll was a CBI witness in that case, according to the resolution professional.


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