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State Bank of India files insolvency plea against Mumbai Metro One

Published on August 04, 2023

Current Context: State Bank of India (SBI) has filed a petition with the National Company Law Tribunal (NCLT) in Mumbai to admit Mumbai Metro One Pvt Ltd (MMOPL) under the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC).
State Bank of India files insolvency plea against Mumbai Metro One
  • MMOPL is a joint venture between the Mumbai Metropolitan Regional Development Authority (MMRDA) and Reliance Infrastructure (RInfra), which operates the Versova-Andheri-Ghatkopar metro line in Mumbai.
  • SBI's move is to recover outstanding dues of more than Rs 416 crore from MMOPL, which are owed to various lenders who financed the project. Apart from SBI, other lenders involved in this matter include IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra, and India Infrastructure Finance Company (UK).
  • MMOPL has stated that it is seeking legal counsel to protect its interests and address any potential financial consequences that may arise due to the ongoing legal proceedings. Reliance Infrastructure, as a major stakeholder in MMOPL, has also said that it will safeguard its position and interests in the case.
  • The outcome of the NCLT's decision will determine the impact on MMOPL's financial stability and operations moving forward.

Question: 

Q.1 Which of the following is the main reason for SBI’s petition to admit MMOPL under the CIRP?
a. To take over the management and operations of MMOPL

b. To recover outstanding dues of more than Rs 416 crore from MMOPL
c. To renegotiate the terms and conditions of the project financing
d. To challenge the validity and legality of MMOPL’s joint venture agreement
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