Atria Power Faces Multi-Court Battle Over INR 1000 Cr Loan Default

Bengaluru-based Atria Group, owned by Sunder Raju and K. Nagaraju, is facing legal proceedings across multiple judicial forums following defaults on debt exceeding INR 1,000 crore. The diversified conglomerate has interests spanning several sectors, including renewable energy.

According to the sources, key lenders, Piramal Finance Ltd. and Omkara Asset Reconstruction Pvt. Ltd., have initiated enforcement actions after repeated payment defaults. The lenders hold security in the form of pledged shares of the group’s holding company and its operating subsidiaries. Separately, Baboon Investments, a foreign investment fund, has also commenced similar recovery proceedings.

Legal actions undertaken include invocation of pledged shares and initiation of corporate insolvency resolution processes. While insolvency proceedings remain underway, lenders have already enforced certain security rights. In one instance, the Bombay High Court has granted interim relief in favour of the lenders.

The developments underscore increasing lender assertiveness in enforcing security structures within complex financing arrangements, particularly in capital-intensive sectors such as renewable energy. These cases also reflect how financial distress at the group level can have cascading implications for operational subsidiaries, even those with stable revenue streams.

Ongoing proceedings across forums such as the National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT), and high courts highlight the multi-layered legal challenges associated with large-scale defaults in India’s infrastructure and energy sectors.