BDO India, the transactions auditor, has identified three potentially fraudulent or wrongful transactions worth ₹63.34 crore under the former management of Hindusthan National Glass & Industries Ltd (HNG) during FY 2019-20 to 2021-22.
The entities reportedly involved are:
- Rafbrix International – ₹15.10 crore
- Maithan Ceramic Ltd – ₹5.78 crore
- Durvish Vyapaar Pvt Ltd – ₹42.46 crore
🔹 Auditor Observations
- Rafbrix International (₹15.10 Cr):
Outstanding advances indicate a potential diversion of funds, which can be classified under Section 66 of the Insolvency and Bankruptcy Code (IBC) as “fraudulent or wrongful trading.” - Durvish Vyapaar Pvt Ltd (₹42.46 Cr):
The audit revealed negative physical site visits, absence of vendor selection rationale, insufficient supporting documents, and procurement at higher rates, indicating possible wrongful trading. - Maithan Ceramic Ltd (₹5.78 Cr):
Included in the audit findings as part of irregular trading activities.
The forensic review was conducted as part of the Corporate Insolvency Resolution Process (CIRP) of HNG, previously India’s largest glass container manufacturer.
🔹 Resolution Process
- HNG, debt-ridden, was admitted for resolution by the National Company Law Tribunal (NCLT) in October 2021 following a lenders’ petition.
- On August 14, 2025, the NCLT Kolkata bench approved the resolution plan submitted by Independent Sugar Corporation Ltd (INSCO) for HNG’s revival.
- The Committee of Creditors (CoC) approved the plan with 96.16% majority on June 13, 2025.
🔹 Key Details of the Resolution Plan
- Total Investment: ₹2,250 crore
- Upfront Cash: ₹1,900 crore
- Deferred Payment (3 years): ₹350 crore to CoC
- Equity to Creditors: 5%
- Timeline:
- Upfront cash to be paid within 30 days of NCLT approval
- Additional working capital and equity issuance to CoC members to be completed within 90 days
- Capex Commitment: ₹1,000 crore to rebuild furnaces and modernize equipment
After a 45-day monitoring phase, complete control of HNG will transfer to the Madhvani Group, with a new board nominated by the Group taking charge.
