Sanwaria Consumer Limited creditors seek liquidation after bids

Sanwaria Consumer Limited’s creditors decided to seek liquidation after approving none of the resolution plans invited following five eligible expressions of interest, according to its 14 November 2026 filing. The application to start liquidation has been filed with the National Company Law Tribunal, while Sanwaria Consumer remains under the corporate insolvency resolution process admitted on 29 May 2020.

Why did Sanwaria Consumer creditors seek liquidation?

Sanwaria Consumer’s committee of creditors decided to seek liquidation because none of the resolution plans put to its members for approval was approved. The resolution professional had invited expressions of interest from parties seeking to revive Sanwaria Consumer, received five eligible expressions of interest, and subsequently invited resolution plans from prospective resolution applicants.

The committee discussed the plans received from prospective resolution applicants and put them to a vote, but the filing says no plan secured its approval. The disclosure does not give the number of final resolution plans received, identify any applicant, disclose proposal values, or state the voting outcome for each plan. It also does not give the committee’s reasons for rejecting the plans.

The filing distinguishes between five eligible expressions of interest and the later resolution plans invited from prospective applicants. That sequence means the five figure refers to the preliminary interest stage, not necessarily to five final plans. After the plans were rejected, the committee decided to liquidate Sanwaria Consumer and filed an application with the National Company Law Tribunal, or NCLT, to initiate the process.

Sanwaria Consumer has disclosed a filed liquidation application, not an NCLT liquidation order. The 14 November 2026 document gives no hearing date, order date, proposed liquidator, estimated asset realisation, or expected creditor distribution. The tribunal’s decision on that application is therefore the next disclosed legal step.

How did Sanwaria Consumer’s insolvency process progress?

Sanwaria Consumer entered the corporate insolvency resolution process, or CIRP, on 29 May 2020 after the NCLT admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The filing identifies the petitioner as Kishor Ramniklal Unadikat, sole proprietor of Shakti Clearing Agency, and says Rajiv Goyal was appointed interim resolution professional, or IRP.

The committee of creditors approved replacement of the IRP with 100% voting, according to the auditor’s report. Under an NCLT order dated 4 September 2020 in the cited company petition and interlocutory application, Rajiv Goyal was directed to hand over documents and charge to Gautam Mittal as resolution professional.

The period from the 29 May 2020 CIRP admission to the 14 November 2026 filing exceeds six years, and the reported process has moved from seeking a revival plan to a liquidation application. The filing does not state the operational creditor’s claim, the debt admitted by the NCLT, total creditor claims, or the composition of the committee of creditors.

The disclosure also does not explain whether extensions, exclusions of time, appeals or other proceedings affected the interval between the 2020 admission and the liquidation application. It only records the 29 May 2020 admission, the 4 September 2020 replacement of the IRP, five eligible expressions of interest, rejected plans and the later application for liquidation.

What did the auditor report on Sanwaria Consumer’s accounts?

Sanwaria Consumer’s independent auditor said its limited review found nothing that caused it to believe the unaudited standalone or consolidated financial statements for the quarter ended 30 September 2026 failed to make required disclosures or contained a material misstatement. Husain Shabbir & Co issued the separate standalone and consolidated review reports on 14 November 2026 under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The reports say the work was conducted under Standard on Review Engagements 2410, which involves inquiries and analytical procedures. The auditor states that a limited review is substantially less extensive than an audit under the Companies Act, 2013, and accordingly does not express an audit opinion. This distinction applies to both the standalone company and the consolidated group for the September 2026 quarter.

The auditor also reported that all expenses had been recorded on a cash basis, which it said was contrary to Sanwaria Consumer’s accounting policy. The filing does not quantify the expenses affected, identify the reporting periods involved, or provide an alternative result calculated on an accrual basis.

Bank balances are subject to confirmation from management, the auditor said. It added that there had been no transactions in bank accounts in the past period except for two bank accounts, while balances were carried forward. The report does not identify those two accounts, disclose their balances, or give a date by which confirmations may be received.

What operations did Sanwaria Consumer disclose during CIRP?

Sanwaria Consumer said commercial activity was continuing at a limited permitted level during CIRP, specifically warehousing, leasing and job work. The note to the financial results links those activities to operations under the resolution professional and the committee of creditors after the 29 May 2020 insolvency admission.

Sanwaria Consumer reports its financial results in one segment because it is engaged in the fast-moving consumer goods sector. The single-segment presentation does not provide a separate revenue or profit figure for warehousing, leasing or job work in the quarter or half year ended 30 September 2026.

The 14 November 2026 announcement includes unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. The consolidated review report describes the group as Sanwaria Consumer and its subsidiary, but the filing does not identify the subsidiary or separate the insolvency-related operating activities between the entities.

The source does not state whether the limited activities generated revenue in the September 2026 quarter or whether they will continue while the liquidation application is before the NCLT. It also does not identify the assets used for warehousing, leasing or job work, leaving the scale and economics of those activities undisclosed.

Conclusion

Sanwaria Consumer’s disclosed revival process did not yield an approved resolution plan: five eligible expressions of interest led to invited plans, but the committee of creditors approved none and opted to seek liquidation. The company has remained in CIRP since 29 May 2020, while the auditor has separately noted cash-basis expense recognition and bank balances awaiting management confirmation.

The immediate item to watch is the NCLT’s action on the filed liquidation application, as Sanwaria Consumer has not reported a liquidation order, timetable, liquidator or recovery estimate. Subsequent financial disclosures may also show whether limited warehousing, leasing and job-work activities continue and whether the auditor’s observations are resolved.