The central government has put on hold the ₹211 crore strategic sale of Pawan Hans Ltd on the back of adverse NCLT observations on one of the consortium members — Almas Global Opportunity Fund — in a separate matter related to the Insolvency and Bankruptcy Code (IBC).

“We are legally examining the matter. We have not given the letter of award yet in the Pawan Hans strategic sale. We received information regarding adverse observation of the Kolkata bench of the NCLT against Almas Global Opportunity Fund. When we have received information we cannot go ahead with the deal,” DIPAM secretary Tuhin Kanta Pandey told Fortune India.

The observation of the NCLT came in the matter of insolvency resolution matter of EMC Ltd on April 20, in which Almas Global Opportunity Fund was a successful resolution applicant but intentionally delayed the resolution process according to the tribunal.

It also failed to make the upfront payment within sixty days of approval of the resolution plan and kept delaying payment on “frivolous grounds”, NCLT Kolkata said, ordering a forfeiture of bank guarantee worth ₹30 crore. The tribunal also ordered proceedings for contravention of resolution plan as per section 74(3) of the IBC.

Even though the ruling of the Kolkata bench of the NCLT came on April 20, DIPAM got to know about it only a couple of days back.

It may be noted that the central government had approved the ₹211 crore bid of Star9 Mobility Pvt Ltd — a consortium of three companies — for strategic disinvestment of Pawan Hans Limited on April 29, nine days after the NCLT Kolkata ruling. Pawan Hans is a joint venture of government of India and ONGC providing helicopter and aero mobility services.

The reserve price for sale of 51% shareholding of PHL was fixed at ₹199.92 crore, on the basis of valuation carried out by experts.

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