Recovery of Fraudulent Property Advance

The National Company Law Tribunal, Mumbai Bench-I, by order dated 30 June 2026, gave effect to the findings of the NCLAT and held that the forfeiture of ₹29.35 crore paid by Satra Properties (India) Limited towards acquisition of development rights was a fraudulent transaction falling within Section 66 of the Insolvency and Bankruptcy Code, 2016. 

The Tribunal concluded that the transaction lacked commercial substance, was structured entirely in favour of the counterparty, and caused substantial prejudice to the Corporate Debtor and its creditors. Accordingly, it directed recovery of the amount for the benefit of the Corporate Debtor.