IIFCL UK moves NCLT for MMOPL insolvency in 2026

What the NCLT petition is about

India Infrastructure Finance Company (UK) Limited (IIFCL UK), the overseas arm of state-owned India Infrastructure Finance Company, has approached the National Company Law Tribunal (NCLT) seeking insolvency proceedings against Mumbai Metro One Private Limited (MMOPL). The lender has alleged dues of about ₹1,745 crore. MMOPL is controlled by Reliance Infrastructure.

The petition has been filed under Section 7 of the Insolvency and Bankruptcy Code (IBC). IIFCL UK told the tribunal that the matter relates to an alleged default on an external commercial borrowing (ECB) facility. The lender identified April 1, 2018, as the date of default.

Who heard the case and what happened in court

A Bench of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar heard the matter on Wednesday. During the hearing, IIFCL UK’s counsel submitted that the total outstanding amount was around $182 million.

When the tribunal asked for a break-up of the amount, the counsel stated that the principal claim was approximately $16.35 million, with the remainder comprising interest. IIFCL UK also informed the tribunal that about 10 per cent of the dues were paid in December 2022, after which no further payments were made.

NCLT points out defects and gives seven days

The tribunal pointed to several defects in the petition and gave IIFCL UK seven days to rectify them. The Bench issued notice to IIFCL UK under the first proviso to Section 7(5) of the IBC and allowed seven days to cure the defects.

The matter will next be heard on October 12. The direction indicates the tribunal is seeking procedural compliance before taking the petition forward.

The claim size and the debt break-up disclosed so far

Two figures have been placed on record in the proceedings: the rupee-denominated claim cited as about ₹1,745 crore, and the dollar-denominated outstanding of around $182 million. The lender has also provided a principal component of approximately $16.35 million, with the balance attributed to interest.

While the petition is framed under the IBC’s financial creditor route (Section 7), the immediate focus at this stage is the completeness and correctness of the filing, given the defects flagged by the NCLT.

MMOPL, Reliance Infrastructure control, and the joint venture context

MMOPL is described as being controlled by Reliance Infrastructure. In disclosures related to the metro joint venture, Reliance Infrastructure has stated it holds a 74% stake in the Mumbai Metro One joint venture.

MMOPL’s position has been in focus in recent months because of restructuring actions and litigation outcomes linked to its metro operations and disputes involving the Mumbai Metropolitan Regional Development Authority (MMRDA).

Parallel insolvency track: NARCL restructuring and petition withdrawal

Separately, Reliance Infrastructure has said its subsidiary MMOPL restructured its total financial obligations of ₹2,771.32 crore with National Asset Reconstruction Company Limited (NARCL) on July 9, 2026. According to the company, the restructuring reduces debt by more than ₹1,100 crore as on March 31, 2026.

Reliance Infrastructure has also disclosed that the NCLT, Mumbai Bench allowed withdrawal of the petition filed under Section 7 of the IBC by NARCL against MMOPL. The company said the restructuring would lead to the withdrawal of insolvency proceedings against MMOPL.

Bombay High Court order on arbitral award and release of deposits

Reliance Infrastructure has stated that it secured a favourable judgment from the Bombay High Court regarding MMOPL. The court partially upheld an arbitral award of ₹516 crore plus interest, and directed release of funds from MMRDA deposits after 8 weeks.

In another disclosure, Reliance Infrastructure said it received an arbitral award of ₹157.64 crore from MMRDA in a dispute related to subordinated debt provided to MMOPL.

Reliance Infrastructure’s other regulatory and legal developments

Reliance Infrastructure has disclosed multiple developments involving investigative agencies. On September 2, 2026, the company received a prosecution complaint from the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) for an alleged amount of ₹179.66 crore, and said the financial implications were not yet ascertainable.

On August 18, 2026, it received a pre-cognizance notice from the Special Judge, CBI, New Delhi, regarding an ED complaint alleging about ₹3,000 crore under PMLA sections 3 and 4 in the Reliance Home Finance matter.

Trading restrictions and the company’s request for ASM review

Reliance Infrastructure has also approached SEBI, NSE and BSE seeking a review of the IBC-linked surveillance framework that places trading in its shares under additional restrictions. The company said trading is allowed only once a week within a narrow plus or minus 5% price band.

It argued that the mechanism adversely affects more than 7 lakh retail public shareholders and leads to price movements that it described as mechanical and predictable. Reliance Infrastructure proposed a calibrated approach that retains risk-mitigation measures such as gross settlement, 100% margin requirements, additional surveillance deposits and price-band safeguards, while enabling better price discovery. It suggested alternatives including a periodic call-auction mechanism or a wider and graded price band.

Key facts table

Timeline of the connected events

Market impact and why the filing matters

The immediate market relevance comes from the intersection of multiple legal and restructuring tracks tied to Reliance Infrastructure-linked entities. An IBC Section 7 petition, if pursued and admitted, can materially influence creditor negotiations and the operating environment for the concerned entity.

At the same time, the NCLT’s focus on defects and the seven-day cure window means the matter is currently at a procedural stage. Investors tracking Reliance Infrastructure have also been watching the company’s representations on stock trading restrictions, which it attributes to IBC-linked surveillance rules.

What to watch next

The next key milestone is the October 12 hearing, when the tribunal is expected to consider the status of corrections and whether the petition meets the admission threshold after defects are cured. Separately, stakeholders will track the practical impact of MMOPL’s restructuring with NARCL and the implementation of court-directed fund releases linked to MMRDA deposits.

Any changes in the trading framework for Reliance Infrastructure shares will depend on SEBI and exchange decisions on the company’s representation seeking modification of the ASM-linked restrictions.