Forged Bank Guarantee Scuttles Rescue Plan: NCLT Orders Liquidation of Unitech Transformers

The National Company Law Tribunal (NCLT) ordered the liquidation of Unitech Transformers after discovery of a forged bank guarantee presented during the corporate insolvency resolution process. The tribunal held that such fraudulent actions vitiate the entire resolution plan and render it non-maintainable. It emphasized the need for transparency, authenticity of financial instruments, and due diligence by resolution applicants. The ruling reiterates that any fraudulent attempt to mislead creditors or authorities constitutes a serious offence under the Insolvency and Bankruptcy Code (IBC). The decision reinforces the sanctity of the insolvency process and serves as a warning against manipulation or deceitful conduct that obstructs corporate rehabilitation and creditor confidence.