Ambuja Cements and Former Sanghi Industries Promoter Resolve Legal Dispute

The legal conflict between Ambuja Cements and former Sanghi Industries promoter Alok Sanghi has ended as Sanghi withdraws his appeal following a settlement. This resolves the dispute over a personal guarantee of Rs 84 crore related to Ambuja's acquisition of Sanghi Industries.

A legal battle between Ambuja Cements and Alok Sanghi, the former promoter of Sanghi Industries, has been resolved. Sanghi withdrew his appeal before the National Company Law Appellate Tribunal (NCLAT), following a comprehensive settlement with Ambuja Cements, which had contested Sanghi's personal guarantee of Rs 84 crore.

The acquisition of Sanghi Industries by Ambuja Cements, finalized in December 2023 for Rs 5,185 crore, provoked a series of legal wrangles. The conflict primarily centered on an unpaid electricity bill that led Ambuja to invoke Sanghi's personal guarantee. Subsequent to the resolution, Ambuja also retracted its plea against Sanghi from the National Company Law Tribunal.

This resolution brings an end to proceedings that included appeals and counterclaims concerning an alleged guarantee linked to Sanghi Industries' acquisition. Ambuja Cements, part of the Adani Group, initiated proceedings under Section 95 of the Insolvency and Bankruptcy Code.

Sanghi contested Ambuja's insolvency actions, arguing that his acquisition agreement solely encompassed warranties and indemnities, excluding any personal guarantee. With the settlement, the NCLAT appeal has been formally dismissed, closing this chapter of litigation.