Tamil Nadu’s fraud-hit Thiru Arooran Sugars Ltd is headed for liquidation after lenders failed to receive any viable revival plan for the company.
The National Company Law Tribunal (NCLT) ordered the liquidation and appointed Ramakrishnan Sadasivan to carry out the process.
In June 2019, the NCLT admitted Thiru Arooran Sugars on a case by State Bank of India (SBI) over a default of Rs 149 crore.
Besides SBI, the committee of creditors (CoC) includes Punjab National Bank, IDBI Bank, UCO Bank and Union Bank of India, all of which granted loans of Rs 160 crore in 2016.
The loan accounts were classified as non-performing assets (NPAs) in 2018.
In December 2020, a resolution plan by Kals Distilleries was rejected by the CoC after which it voted for liquidation.
The resolution professional had submitted the liquidation value for the land and building at about Rs 183 crore.
In May 2019, the police arrested chairman and managing director RV Tyagarajan on charges of cheating more than 1,500 sugarcane farmers of Rs 80 crore, said a report by The Hindu.
Set up in 1954, Thiru Arooran Sugars is one of the oldest sugar mills with a capacity to crush more than 5,000 tonnes of sugarcane a day.
It also operates its associate company Shree Ambika Sugars and subsidiary Terra Energy.