NCLAT Orders 75% Interim Payment Distribution for BKEL Lenders

The National Company Law Appellate Tribunal (NCLAT) has directed an interim payment of 75 per cent from an escrow account to the lenders of Baleshwar Kharagpur Expressway Limited (BKEL), which is promoted by IL&FS Transportation Networks Ltd (ITNL). The balance will be used for maintenance and operations.

The National Company Law Appellate Tribunal (NCLAT) has ordered an interim payment of 75 per cent of the funds deposited in an escrow account to the lenders of Baleshwar Kharagpur Expressway Limited (BKEL), a company promoted by IL&FS Transportation Networks Ltd (ITNL).

The directive came in response to a plea filed by the State Bank of India (SBI). NCLAT noted the lack of reasonable grounds from the Board for not proceeding with the interim distribution as per the Concession and Escrow Agreements.

SBI sought the distribution of Rs 175 crore to secured lenders from BKEL's escrow funds, which totaled Rs 236.82 crore as of September 2023. While 75 per cent of the funds will be distributed to the lenders, the remaining amount will be allocated for operational and maintenance costs.

(With inputs from agencies.)