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NARADism

Due Diligence

Section 29A Ineligibility Checks

Fast, documented checks on resolution applicants, their promoters, connected persons and group entities: wilful defaulter status, NPA exposure, disqualifications, criminal antecedents and undisclosed relationships with the corporate debtor.

What we check

  • Wilful defaulter status of the applicant, its promoters and connected persons
  • NPA exposure across the applicant and its group entities
  • Disqualifications of the applicant, its promoters and directors
  • Criminal antecedents
  • Undisclosed relationships with the corporate debtor and its promoters
  • The real ownership behind bidding vehicles

Insolvency matters are won on what the transaction trail actually shows. We work alongside IBC counsel, resolution professionals and lender committees as an independent forensic and intelligence partner. Section 29A checks are fast, documented checks on resolution applicants, their promoters, connected persons and group entities, so that an ineligible applicant is identified before the committee of creditors votes, and integrity diligence is available on promoters seeking a return.

How we do it

Our method

  1. 1

    Map the applicant population

    Identify the applicant, its promoters, directors, connected persons and group entities, and the vehicles through which the bid is made.

  2. 2

    Registry & database checks

    Corporate filings, ownership and directorship research; regulatory, court, enforcement and defaulter database screening.

  3. 3

    Relationship mapping

    Link and network analysis to surface undisclosed relationships between the applicant, its connected persons and the corporate debtor.

  4. 4

    Discreet verification

    Quiet, lawful enquiries and field checks where records are thin or a relationship needs to be confirmed on the ground.

  5. 5

    Documented report

    Findings recorded against each limb checked, drafted so that counsel and the resolution professional can rely on them before the NCLT and NCLAT.

Deliverables

  • Documented Section 29A report on each applicant and its connected persons
  • Ownership and relationship map
  • Red-flag summary for the resolution professional and the committee of creditors
  • Reports drafted to be annexed, affidavits sworn where needed, and experts available to depose before the NCLT, NCLAT and courts
Shilu Pandey

Shilu Pandey

Associate Partner – Legal, Investigations & Compliance

B.A. LL.B. (Hons.) · LL.M. Corporate Law

Part of

Tech-Enabled Due Diligence

Where it sits in the insolvency lifecycle

  1. 01

    Pre-admission

    Forensic review of the debtor's books before filing under Sections 7, 9 or 10; early red flags on diversion and related parties.

  2. 02

    CIRP & CoC

    Transaction audits for the resolution professional; PUFE reviews under Sections 43, 45, 49 and 66; claim verification support.

  3. 03

    Resolution

    Section 29A ineligibility checks on applicants and connected persons; integrity diligence on promoters seeking a return.

  4. 04

    Avoidance litigation

    Affidavit-ready forensic reports and expert testimony in avoidance applications and Section 66 proceedings.

  5. 05

    Recovery & enforcement

    Asset tracing against promoters and personal guarantors to support Section 95 proceedings and post-resolution recovery.

Related work for resolution professionals and committees of creditors

  • PUFE and avoidance transaction reviews with fund-flow reconstruction and related-party mapping that supports the RP's application and survives cross-examination.
  • Transaction audits of the corporate debtor's operations and cash flows during the look-back, giving the CoC a clear picture of diversion, siphoning and round-tripping before it votes on a plan.
  • Section 66 fraud evidence: digital forensics on company systems and email review to build the evidentiary basis against directors and management.
  • Discreet intelligence on rival resolution applicants, dissenting creditors' motives and promoter conduct, so counsel is never surprised in the hearing room.

How we work with counsel

We work under counsel's instruction, so work product is prepared for litigation and privilege is preserved where available. Start with one matter: a single Section 29A check, PUFE review or asset trace on a live matter, and judge the collaboration on the report.

Also in Due Diligence

How an engagement starts

Tell us what you can’t see.

Every engagement starts with a confidential conversation. No matter is too early, or too sensitive, to raise. A partner replies within one working day.

Write to a partner
  1. 01

    A 30-minute call

    To align on the question, the team and the sites involved.

  2. 02

    A fixed-scope proposal

    A tailored scope and fee note within five working days.

  3. 03

    Discreet execution

    Small senior teams, conflict-checked, DPDP and GDPR compliant handling.