Bankruptcy Declaration: “The Reality Is Different, I Will Fight It Legally” – Naseer Ahmed
The Bengaluru Bench of the National Company Law Tribunal (NCLT) has declared Congress Legislative Council member (MLC) Naseer Ahmed “bankrupt,” citing his failure to repay outstanding debts of M/s Scotts Garments Limited, a Bengaluru-based company. However, Naseer Ahmed has said, “The reality is different. I will fight this matter legally.”
The Bengaluru Bench of the NCLT, comprising Sunil Kumar Agarwal (Judicial Member) and Radhakrishna Sripada (Technical Member), issued the order on June 8 under the Insolvency and Bankruptcy Code (IBC), 2016, based on a petition filed by State Bank of India, Canara Bank, and IDBI Bank. The tribunal also declared bankrupt Naseer’s wife, Nuzhat Ayesha Naseer, and son, Awaiz Ahmed, who had acted as personal guarantors for the loans as former directors of the company, where Naseer had served as Managing Director.
Various media reports have stated that Naseer failed to repay outstanding dues amounting to ₹1,454 crore. They also reported that, since he has been declared bankrupt, he could be disqualified from his position as an MLC under Section 140 of the IBC and Article 191(1)(c) of the Constitution.
Speaking directly to Eedina.com about the issue, former minister Naseer Ahmed said:
“It is true that I was running Scotts Garments and that the company incurred losses. However, these developments have caused me great distress. I had the satisfaction of providing employment to 16,000 workers, especially women. My company was also known as an excellent enterprise. Due to changes in the industry, the company suffered losses. At that time, personal guarantees were provided to the SBI trust as per the rules. Our argument was that the issue should be resolved by enforcing those guarantees. However, the concerned authority did not accept that view. After liquidation, all those assets went to the bank.”
Responding to reports that he owes ₹1,454 crore, Naseer said:
“When I saw reports mentioning thousands of crores of rupees, even I was shocked. Those figures are merely the result of accounting calculations. A person like me could never have obtained a loan of that magnitude.”
He further stated:
“Throughout my political career, I have conducted myself honestly in financial matters. I have never chased wealth or personal assets. Even when I was close to the center of power, I always kept the interests of the people, the community, the party, and the government foremost in mind.”
Naseer Ahmed added:
“I will file an appeal against this order in accordance with the law. Based on the work I have done so far and the strength of the law, I am confident that I will prevail.”
