Popular Finance Scam: NCLT Kochi Orders Winding Up Of 14 Group Entities
The National Company Law Tribunal at Kochi on Tuesday ordered the winding up of several companies and limited liability partnerships forming part of the Popular Finance Group in winding up proceedings initiated by the Union of India through the Serious Fraud Investigation Office (SFIO).
A coram of Judicial Member Vinay Goel and Technical Member Ravichandran Ramasamy passed the order. The Tribunal also appointed the Official Liquidator as the Company Liquidator to take further steps in accordance with law.
The proceedings arise from an SFIO investigation into the affairs of the group, which has been accused of being involved in the multi-crore Popular Finance scam.
Earlier, while considering the winding up petition, the Tribunal had restrained the concerned companies from creating any third-party interest in, transferring, alienating, encumbering or mortgaging their movable and immovable assets without its prior permission.
The winding up proceedings were based on the SFIO's investigation report dated February 27, 2025. The agency had alleged that the companies were incorporated for unlawful purposes and that their affairs were conducted fraudulently and in a manner prejudicial to public interest. It had also pointed to the failure to file financial statements and annual returns for five consecutive financial years.
With the pronouncement of the final order, the Tribunal has now ordered dissolution of the companies and appointed the Official Liquidator as Company Liquidator to proceed further.
The entities covered by the order include Mary Matha Popular Nidhi Limited, Saan Popular Finance Private Limited, Amala Popular Nidhi Limited, MRPN Chits Private Limited, Saan Popular Fuels LLP, Saan Popular E-Compliance Solutions LLP, Saan Popular Medicare LLP, Mary Rani Popular Nidhi Limited, Mary Rani Trading LLP, Vakayar Lab LLP, My Popular Marine Products LLP, Saan Popular Business Solutions LLP, MRPN Popular Exports LLP and Saan Popular Traders LLP.
The order follows the Kerala High Court's earlier consideration of a plea by the MRPN Minority Shareholders Customers Welfare Association, which had alleged inaction on the SFIO's final investigation report. The Centre had informed the High Court that criminal complaints had already been filed before the competent court and that winding up proceedings was being initiated against the concerned entities.
For Petitioner: Advocate Renjith R