NCLAT Questions CIRP Over Alleged Sham and Circular Group Transactions

Chandra Shekhar Jha & Anr. Vs Religare Enterprise Ltd. & Ors. (NCLAT Delhi) Conclusion: The Adjudicating Authority failed to properly examine whether the transactions underlying the Section 7 application constituted genuine financial debts or were merely sham arrangements involving round-tripping and financial layering among related entities. Since substantial material indicating possible fraud and collusion had been placed on record, the defence raised by the Corporate Debtor could not have been dismissed as illusory or a mere moonshine defence. The appeals challenging the admission o...