Hogar Controls India Pvt Ltd Enters Bankruptcy Following Alleged Fraudulent Takeover
In a dramatic turn of events, Hogar Controls, a prominent Indian smart home company, has found itself plunged into a state of bankruptcy and insolvency, following a tumultuous series of events that have unfolded in recent times. The National Company Law Tribunal (NCLT) has officially admitted the company into bankruptcy proceedings, marking a significant blow to its once-stable operations.
At the heart of the controversy lies a bitter dispute over a hostile takeover orchestrated by NRI investor Mr. Vishnu Reddy, who has been embroiled in accusations of fraudulent practices and non-payment of dues to vendors. The NCLT case CP(IB) No 65/9/HDB/2022, initiated in 2022, has brought to light a litany of allegations against Hogar Controls, including illegal software copying, the establishment of illegal proxy servers, and failure to settle a substantial sum totaling INR 4.7 crore owed to various stakeholders.
Despite concerted efforts by Vishnu Reddy’s legal team to sway the proceedings with falsified documentation, the court has unequivocally dismissed their claims, exposing their attempts at manipulation. Furthermore, baseless allegations of a cyber-attack leveled against the company’s founders and former employees have been debunked by the court, revealing a calculated ploy underlying the hostile takeover bid.
Compounding matters, it has emerged that Vishnu Reddy is embroiled in a slew of legal entanglements stemming from his involvement with other startup ventures. Allegations ranging from forgery to fraudulent activities, cheating, and even threats and intimidation involving Reddy and his associates have come under intense scrutiny, with multiple court orders from Metropolitan and High Courts shedding light on the extent of the legal quagmire. In one particularly damning case, two of Reddy’s associates have already been formally charged, while investigations into other allegations remain ongoing.
In adherence to due process within the framework of bankruptcy and insolvency proceedings, Vishnu Reddy and his brothers have been swiftly ousted from their positions as directors of Hogar Controls. In their stead, the company has appointed a new Interim Resolution Professional tasked with navigating the intricate process of insolvency in accordance with the directives laid out by the court.
