Edelweiss has alleged that “a fraud was perpetrated by Synergies Dooray , the corporate debtor, its related party, Synergies Castings and Millennium Finance“ and has thus appealed NCLAT to scrap the recast plan.Synergies Dooray entered into a complicated deal with its sister concern Synergies Castings even as its matter was before BIFR. Synergies Dooray owed Rs. It sold its assets to Synergies Castings and got them back on rent. Later, Synergies Dooray assigned the debt to Synergies Castings while entering into a one-ti me settlement with banks. 40 crore to Synergies Castings since the assignment deeds had not been registered and the stamp duty not paid.

Source: Economic Times September 09, 2017 05:26 UTC