The NCLAT (National Company Law Appellate Tribunal) has decided to support an earlier ruling that lets Sapphire Media buy Reliance Broadcast Network Ltd. This company is known for its FM radio station, Big 92.7 FM.
On May 6, 2024, the NCLT (National Company Law Tribunal) approved Sapphire Media’s bid, but other companies, like Abhijit Realtors & Infraventure and Creative Channel Advertising & Marketing, disagreed and filed appeals. They claimed that there were mistakes in the bidding process. However, the NCLAT found no issues with how the resolution professional handled everything.
The NCLAT said, “The process followed was in line with the rules, and we see no reason to change the original decision.” Thus, all appeals were dismissed.
The trouble started when Reliance Broadcast Network was taken to the NCLT for insolvency on February 24, 2023, after a request from IDBI Trusteeship Services, a financial creditor. Six bids were submitted:
– Abhijit Realtors at ₹80.20 crore
– Creative Channel Advertising at ₹100 crore
– Entertainment Network (India) at ₹37.17 crore
– Sapphire Media at ₹104.28 crore
The Committee of Creditors (CoC) decided to hold a bidding challenge process, setting a starting price of ₹240 crore. In the third round, Sapphire Media increased its bid to ₹251 crore, making it the highest.
The CoC later called for revised offers. On November 4, 2023, Sapphire Media again led with a bid of ₹261 crore, which the CoC approved with 89% of votes. Although some alleged that Sapphire Media should have been ineligible to bid, the NCLAT rejected these claims.
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