Siti Networks Limited Provides Update on Loan Status and Insolvency Proceedings

Siti Networks Limited Provides Update on Loan Status and Insolvency Proceedings​

Siti Networks Limited has provided an update regarding its financial indebtedness and ongoing insolvency resolution process, detailing various stages of judicial proceedings initiated under the Insolvency and Bankruptcy Code, 2016.

The company's current financial health in relation to its debt obligations is reported across multiple categories, including loans and total financial indebtedness.

Key figures related to loan facilities and total indebtedness are detailed below:

Judicial Timeline and Insolvency Resolution Process​

The Corporate Insolvency Resolution Process (CIRP) for Siti Networks Limited was initiated by the Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench, following an order dated February 22, 2023, under Section 7 of the IBC. Mr. Rohit Mehra was appointed as the Interim Resolution Professional (IRP). A public announcement inviting creditors to submit claims was made on February 25, 2023.

A related appeal was filed by Ms. Shilpi Asthana before the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, against the Admission Order. The NCLAT issued an interim order directing that the operation of the initial order would remain stayed in the meantime. Subsequently, on August 10, 2023, the NCLAT dismissed this appeal.

CIRP Reinstatement and Judicial Directions​

Following the passing of the NCLAT Final Order, the Admission Order was upheld, and the CIRP of the Corporate Debtor was reinstated, with Mr. Rohit Mehra serving as IRP. The powers of the Board of Directors were vested in the IRP pursuant to Section 17 of the IBC.

On October 1, 2024, the NCLT passed an order setting key parameters for the process, including fixing the insolvency commencement date at February 22, 2023. The Tribunal determined that the moratorium under Section 14 of the Code was applicable during the Stay Period and protected expenses incurred in the ordinary course of business to keep the company as a going concern.

Further judicial action occurred on July 31, 2025, when the NCLAT passed its judgment dismissing all appeals related to multiple cases (including CA(AT)(INS) No. 1975/2024 and CA(AT)(INS) No. 2192/2024). The NCLAT directed financial creditors to remit the amounts received back to the corporate debtor along with accrued interest, as per an order dated October 29, 2024.

Supreme Court Proceedings​

Certain financial creditors have challenged this NCLAT judgment by filing appeals before the Hon'ble Supreme Court. Currently, a stay is granted by the Supreme Court preventing financial creditors from remitting amounts received during the CIRP stay period. The Supreme Court has also directed that no payments shall be made to operational creditors for liabilities relating to the stay period of the CIRP.

SITINET Stock Price Movement​

Shares of Siti Networks Limited are rallying as of 1:02 PM, climbing by 3.03% to trade at ₹0.34, following a move from its opening level. The stock processes through 318,189 shares during live trading and is currently trading within the narrow range established between ₹0.33 and ₹0.34.