NCLT Mumbai Allows First Motion Plea In Merger Of News18 Marathi With Network18

On 17 June, the Mumbai Bench of the National Company Law Tribunal (NCLT) allowed a first motion application seeking directions regarding the proposed merger of News18 Marathi Private Limited with its holding company Network18 Media & Investments Limited.

A Bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan passed the order on a joint application filed under Sections 230 to 232 of the Companies Act, 2013.

The applicant companies informed the Tribunal that their respective Boards approved the scheme on 25 March 2026, with 1 April 2026 fixed as the appointed date. They stated that News18 Marathi is a wholly owned subsidiary of Network18 and that the merger would streamline the corporate structure, consolidate the Marathi news business, generate operational synergies, optimise costs and reduce compliance burdens.

The Tribunal noted that News18 Marathi is a wholly owned subsidiary of Network18 and therefore requires no consideration or issuance of fresh shares under the merger. It also recorded that the scheme would not dilute the shareholding of Network18's existing shareholders.

The Bench dispensed with meetings of the transferor company's equity and preference shareholders after it received consent affidavits. It also dispensed with a meeting of unsecured creditors of News18 Marathi, noting that creditors holding 93.77% in value had consented to the scheme, while it directed notice to the remaining creditors.

Further, the Tribunal directed the companies to issue notices to remaining stakeholders, including shareholders of Network18, and to regulatory authorities such as the Regional Director, Registrar of Companies, Income Tax authorities, GST authorities and the Official Liquidator.

Lastly, the NCLT also directed the companies to file compliance reports after service of notices.