Rs 2,172 crore loan settled for Rs 579 crore? Investigation raises concerns over NARCL's Agson Global deal

Questions are being raised over the settlement of Agson Global Pvt Ltd's debt after documents reviewed by Zee Media suggested that a loan exposure of Rs 2,172 crore was resolved for Rs 579 crore through a settlement approved by the National Asset Reconstruction Company Ltd (NARCL).

According to documents examined by Zee Media's Special Investigation Team, Agson Global had borrowed thousands of crores from a consortium of banks. The account subsequently turned into a non-performing asset (NPA) after the company allegedly failed to repay its dues on time.

The matter later reached the National Company Law Tribunal (NCLT). Agson Global challenged the proceedings before the National Company Law Appellate Tribunal (NCLAT), which upheld the findings against the company. The dispute eventually reached the Supreme Court, which declined to interfere with the NCLAT order, according to records reviewed by Zee Media.

How did NARCL become involved

Following insolvency proceedings, the debt was transferred to National Asset Reconstruction Company Ltd (NARCL), a government-backed bad-loan resolution platform established to help banks recover value from stressed assets.

Documents reviewed by Zee Media indicate that NARCL held 100 per cent voting rights in the Committee of Creditors, giving it effective control over the resolution process.

The documents further suggest that NARCL approved a settlement of Rs 579 crore against a claimed debt exposure of Rs 2,172 crore.

Questions over price discovery

A key issue raised by the investigation relates to the absence of an apparent price-discovery process before the settlement was approved.

According to the documents reviewed by Zee Media, no competitive bidding process was conducted to determine whether a higher recovery value could be achieved through third-party investors or asset reconstruction bidders.

Experts in insolvency and distressed-asset resolution generally consider price discovery an important mechanism for maximising recovery from stressed assets. However, the investigation has not found any public evidence suggesting that a bidding exercise was conducted in this case.

The investigation does not establish wrongdoing by NARCL or any other party. However, it raises questions about whether alternative recovery options could have resulted in a higher settlement value.

Assets and insurance claim under scrutiny

During its review of documents, Zee Media also found references indicating that Agson Global possessed approximately 30 acres of land in Sonipat and was reportedly expecting an insurance claim of around Rs 300 crore.

The investigation raises questions over whether these factors were fully considered while evaluating recovery options. However, Zee Media has not independently verified the current valuation of these assets or the status of the reported insurance claim.

If such assets were available and monetisable, they could potentially have influenced the recovery value, according to individuals familiar with distressed-asset resolution processes.

NARCL faces questions

The settlement has prompted scrutiny over whether sufficient efforts were made to maximise recovery from the stressed asset. The investigation raises questions about the valuation process and the absence of a visible competitive bidding mechanism.

At the time of publication, no official finding by any court, regulator or investigative agency has established any irregularity in the settlement. NARCL and Agson Global may present their responses or explanations regarding the issues raised in the investigation.

Zee Media will continue to examine documents and developments related to the case.

Reported by: Parivesh Vatsyayan, Special Investigation Team, Zee Media