The National Company Law Tribunal has ordered the liquidation of Richa Industries Ltd. following a vote by financial creditors where over 67% approved liquidation.

The current Interim Resolution Professional (IRP), Mr. Arvind Kumar, has been replaced by Mr. Mohit Chawla as the new liquidator.

The IRP’s conduct was challenged by major financial creditors, Indian Overseas Bank and Union Bank of India, citing inclusion of ineligible creditors in the Committee of Creditors and mishandling of the insolvency process.

However, these allegations were disputed by the IRP.

With liquidation approved, all powers of the board cease and vest in the liquidator, who will manage the estate and recover dues as per legal provisions.