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Tag: NCLT

  • Madhvani Group’s INSCO Assumes Full Control of HNGIL Following Successful IBC Resolution

    Hindustan National Glass & Industries Limited (HNGIL), India’s former largest container glass manufacturer, has been formally acquired by Independent Sugar Corporation Limited (INSCO), a division of the Madhvani Group, based in Uganda, under the Insolvency and Bankruptcy Code (IBC) process.

    INSCO was able to acquire complete control of HNGIL after the official takeover was documented at a board meeting of the newly formed leadership on 26 September. The International Finance Corporation (IFC) and Cerberus Capital Management provided financial support for the transaction, which was spearheaded by businessmen Kamlesh and Shrai Madhvani.

    After the newly established board of HNGIL publicly documented the transition in a meeting on September 26, INSCO took complete control of the company.

    INSCO Received Approval from NCLT

    In addition to regulatory permissions from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), the INR 2,250 crore Resolution Plan had already received approval from the National Company Law Tribunal (NCLT) on August 14, 2025.

    A 45-day monitoring (transition) phase after NCLT approval made sure that everything went smoothly before the new board took over, which marked the beginning of HNGIL’s rebirth. After seven years of litigation since the start of the Corporate Insolvency Resolution Process (CIRP) in October 2021, this historic deal brings an end to one of India’s most well-known insolvency cases. With a 96.16% majority vote, the Committee of Creditors (CoC) decisively accepted INSCO’s Resolution Plan, demonstrating the group’s robust turnaround approach.

    What is INSCO’s Resolution Plan?

    In accordance with the arrangement, INSCO will pay INR 1,901.55 crore in cash up front to workers, operational creditors, and financial creditors. Additionally, a deferred payment of INR 356.28 crore over three years would be made. Consenting financial creditors have also been given 5% of the stock. The NCLT emphasised that 60% of acknowledged claims will be recouped by creditors, and that the plan represented 72% of HNGIL’s Average Fair Value and 114% of its Average Liquidation Value.

    The chairman of HNGIL’s new board, Shrai Madhvani, underlined the role that the company’s employees play in its rebirth. According to him, the brand is adamant that workers are the cornerstone of any successful turnaround. The committed employees of HNGIL have demonstrated incredible fortitude throughout the insolvency phase, and the organisation is dedicated to collaborating closely with them to create a safe, secure, and sustainable future for the business.

    He went on to say that the cooperation of workers, clients, suppliers, regulators, and the federal and state governments will be necessary for HNGIL to be revived. “Our vision is not only to restore HNGIL to its former glory but also to align our efforts with the ‘Viksit Bharat’ vision of Prime Minister Narendra Modi, contributing to India’s growth ambitions as a global industrial powerhouse,” he stated.

    Quick
    Shots

    •The new board took charge on
    September 26, marking the formal transition and revival of the company.

    •The INR 2,250 crore resolution plan
    received approvals from NCLT, RBI, and CCI, and was backed by IFC and
    Cerberus Capital.

    •CoC approved the plan with a 96.16%
    majority, ending a 7-year-long insolvency battle that began in October 2021.

    •Creditors will recover 60% of
    acknowledged claims, with the plan value at 72% of fair value and 114% of
    liquidation value.

  • BluSmart EV Ride-Hailing Website Domain Listed for Sale After Shutdown

    The domain name “blu-smart.com” of the now-defunct electric ride-hailing business BluSmart is for sale. A cursory examination of the BluSmart website showed that users are taken to a parked page indicating that the domain is available for purchase. The development follows a string of issues that the business was experiencing.

    Anmol Singh Jaggi and Puneet Singh Jaggi, cofounders of BluSmart and promoters of Gensol, were found guilty in April by markets regulator SEBI of misusing business funds in a “fraudulent manner”. According to the regulator’s judgement, Gensol attempted to deceive investors, lenders, credit rating agencies (CRAs), and SEBI by submitting fraudulent conduct letters purportedly from its lenders.

    Additionally, SEBI prohibited Gensol Engineering’s promoters from serving as directors or other important managers of the struggling business. BluSmart then stopped offering taxi booking services, making the app available but inoperable.

    In June, BluSmart’s App Stopped working

    Users reported that the app broke upon starting and displayed the warning “something went wrong!” on both iOS and Android smartphones by June, at which point it completely stopped functioning. Due to BluSmart’s financial problems, the Ahmedabad bench of the National Company Law Tribunal (NCLT) accepted an insolvency plea against the company in August.

    Since then, several former executives have claimed compensation under employee claims, and around 200 applicants—including lenders like Catalyst Trusteeship and the Indian Renewable Energy Development Agency (IREDA)—have filed claims against the company totalling almost INR 500 Cr. Gensol Engineering, the publicly traded business that BluSmart’s cofounders, the Jaggi brothers, founded, had been integrated into BluSmart’s operations. Up until recently, Gensol was the largest fleet supplier to BluSmart, which in turn depended significantly on BluSmart as its biggest client.

    However, due to purported governance shortcomings, Gensol has been under regulatory investigation, debt, and lowered credit ratings. Investor confidence was further eroded when credit rating agencies even noted BluSmart’s tardiness in fulfilling some debt obligations.

    BluSmart’s Final Nail in the Coffin

    BluSmart lost the vital support network that enabled them to establish one of India’s largest fleets of EVs exclusively as Gensol’s financial difficulties worsened. This year, the CEO, CBO, CTO, and other senior executives left the organisation, causing a top-level exodus as well. The Jaggi brothers have been under investigation by enforcement agencies and regulators, including SEBI, for potential financial malfeasance, which has further hampered BluSmart’s ability to raise money.

    Earlier this year, it was rumoured that investors, including responsAbility and bp Ventures, were considering a $30 million proposal to revive BluSmart. There has been no indication on whether such a rescue is still possible, though, given that the domain is currently for sale, the app is not working, and insolvency claims are mounting.

    Quick
    Shots

    •The website now redirects users to a
    parked page showing the domain is available for purchase.

    •Founders Anmol Singh Jaggi and Puneet
    Singh Jaggi were found guilty by SEBI of misusing company funds in a
    fraudulent manner.

    •SEBI barred Gensol Engineering’s
    promoters (BluSmart’s backers) from holding key managerial roles.

    •BluSmart app stopped working in June
    2025, displaying “something went wrong!” on iOS and Android.

  • Government Expands Fast-Track Merger Route to Cover More Companies

    In an effort to facilitate business dealings and spur the practice of “reverse flipping”, which involves Indian start-ups and other companies moving their domicile from abroad to the country, the government has expanded the fast-track route for approval of mergers and amalgamations to include more categories of companies.

    More company types are now eligible for the fast-track merger process under Section 233 of the Companies Act of 2013 thanks to changes to the relevant rules that the Ministry of Corporate Affairs (MCA) has notified. The National Company Law Tribunal is not involved in this approval process.

    How Fast-Track Merger will Help the Companies?

    When the total borrowings, including loans, debentures, and deposits, are less than INR 200 crore and there is no default, the revisions have made it possible for mergers between (unrelated) unlisted companies to proceed more quickly.

    Additionally, unless the transferor company is listed, the fast-track scheme will now apply to a variety of additional transactions, including mergers between a holding company (listed or unlisted) and its subsidiary (listed or unlisted). Additionally, if the transferor companies are not listed, mergers between subsidiaries of the same holding company may receive expedited clearances.

    Key Changes in MCA Rules

    Up until a year ago, inbound cross-border reverse mergers needed NCLT permission. To expedite the approval of such bids, the government modified Rule 25A for cross-border deals on September 17 of last year. To eliminate any ambiguity, the most recent revision has brought this rule into compliance with Rule 25, which deals with expedited approvals, according to sources.

    Since many Indian-born or Indian-connected start-ups have chosen to establish their headquarters here, cases of combining a foreign holding company with its Indian fully owned subsidiary have increased in frequency in recent years. The possibility of exiting at a greater valuation in India was one of the attractions.

    According to analysts, global firms who intend to relocate their operations to India in order to take advantage of the thriving capital markets for possible listings and to combine group companies stand to gain from the move to expedite and simplify clearances for such mergers. Flipkart, Dream11, Meesho, PhonePe, Zepto, Razorpay, Pepperfry, and Groww have all relocated their parent firms from foreign jurisdictions back to India throughout the last two to three years.

    Government Push for Flexible Corporate Restructuring

    The enlarged and modified regulations, according to experts, demonstrate the government’s intention to increase the flexibility of business restructuring procedures. At the moment, only start-ups and “small” businesses, as determined by turnover, etc., are eligible for fast-track merger approvals.

    Special start-up promotion programmes and easier access to funding have also contributed to the rise in popularity of reverse flipping. It has been helpful to loosen some of the limits on round-tripping. The expedited approach would still require requesting approval from the MCA’s regional director.

    Quick
    Shots

    •Boost ease of doing business & encourage
    reverse flipping (Indian start-ups shifting domicile back to India).

    •Revision brings Rule 25A (cross-border mergers) in
    line with Rule 25 (fast-track mergers).

    •Start-ups like Flipkart, Dream11, Meesho, PhonePe,
    Zepto, Razorpay, Pepperfry & Groww have shifted parent firms back to
    India.

    •Global firms may relocate to India to tap into
    thriving capital markets & higher valuations.

  • Google Takes CCI to Supreme Court Over INR 216.69 Cr Fine on Play Store Billing Policy

    The Competition Commission of India’s (CCI) antitrust verdict against Google over its Play Store policy was partially supported by the National Company Law Appellate Tribunal’s (NCLAT) March ruling, which Google has challenged in the Supreme Court. “We have appealed the NCLAT’s recent ruling regarding the order from the CCI.

    “We’re still dedicated to helping the Indian app market expand for developers and users alike,” a Google representative told Moneycontrol. The NCLAT’s March ruling maintained a number of the CCI’s order’s main conclusions, although it lowered Google’s fine from INR 936.44 crore to INR 216.69 crore.

    Background: CCI’s Investigation Into Play Store Billing

    CCI opened an investigation into Google in November 2020 in response to complaints about the company’s requirement that in-app purchases and paid apps use the Play Store payment system. Developers were compelled by this scheme to pay a commission, typically 15–30%, and use Google’s own payment mechanism. Google was found guilty of abusing its Play Store dominance.

    Key Findings of CCI and NCLAT

    The watchdog also ordered the company to modify its app payment system and issued a cease-and-desist injunction in addition to the monetary penalty. The NCLAT confirmed CCI’s conclusion in its March 2025 ruling that Google forced app developers to adopt the Google Play Billing System (GPBS) for in-app purchases and paid app sales, thereby imposing unfair and discriminatory conditions on them.

    It also concurred with CCI’s finding that Google promoted its own payment app, Google Pay, over other UPI-based digital payment apps by abusing its control over the Android and Play Store ecosystems.

    Implications for Developers and Digital Payments

    In a March 2025 ruling, the appellate tribunal overturned the watchdog’s rulings limiting innovation and denying market access. It highlighted Google billing services having less than 1% of the UPI market share and the lack of proof of restrictions on technical advancement as justifications for rescinding the specific instruction.

    Remarkably, the NCLAT subsequently allegedly reversed a number of “ex-ante” (preventive) directives that the CCI had given Google, claiming that the order went beyond the CCI’s authority under the existing regulatory structure.

    Two months later, on May 1, the NCLAT reinstituted two directives that mandate Google to reveal its data rules and refrain from using its billing data to gain an unfair competitive edge. Dissatisfied with the appellate tribunal’s partial relief and the clarification’s subsequent setback, Google has now petitioned the SC to contest the order and wants a favourable ruling.

  • Essel Group Takes Kotak AMC to NCLT Over Financial Dispute

    Kotak Asset Management Company (AMC) has been hauled to NCLT by an Essel Group subsidiary, which is claiming INR 12.99 crore in unpaid debts. The case was filed in May and was heard by the Mumbai bench of the NCLT.

    The petition has been submitted in the case by Konti Infrapower and Multiventures, a unit of the Essel Group. According to Konti Infrapower’s argument, Kotak AMC received an advance of INR 12.99 crore in order to fulfil certain obligations resulting from the Non-Convertible Debentures (NCD) issue.

    Following the conclusion of SEBI’s regular yearly examination of the AMC, the AMC was required to reimburse the sum.

    In its plea, Konti Infrapower stated that the applicant, via demand notice dated 19 February 2025, among other things, called on the Corporate Debtor to release the outstanding amounts as a pro tem measure because the Corporate Debtor had failed and neglected to fulfil its contractual obligations as stipulated under the Agreement dated 6th April 2019. As of right now, the Corporate Debtor has not paid the Financial Creditor.

    Findings of SEBI’s Investigation

    The agreement stated that the money given to Kotak AMC would be returned to Konti Infrapower following the conclusion of SEBI’s initial examination of the AMC, according to the petition copy. The SEBI inspection took place between April 2019 and March 2020, and a report was issued by SEBI after the inspection.

    Additionally, the funds that were loaned were to be reimbursed following the fulfilment of the payments under the underlying NCDs to Kotak AMC unit holders. According to Konti Infrapower, on July 6, 2022, it sent two letters to Kotak AMC requesting the release of the agreed-upon payments. On July 28, 2022, Kotak AMC responded, saying SEBI’s inspection was not finished.

    According to Konti Infrapower, a report dated March 28, 2023, has been prepared following the completion of the SEBI inspection of Kotak AMC, which is the catalyst for the company’s money repayment.

    Additionally, Kotak AMC paid back unitholders and liquidated its NCDs. The issue concerns the Rs 20-crore NCDs that were subscribed for by Kotak AMC of Essel Group companies using listed equity shares of Zed Entertainment Enterprises Limited as the underlying security.

    Kotak AMC Sold NCDs of INR 20 crores to Specific Investors

    In February 2019, Kotak AMC sold the NCDs for INR 20 crores to a few additional investors, and the IN 12.99 crore advancement was solely related to this portion. According to a representative for the Essel Group, Konti Infrapower had raised funds from Kotak Mutual Fund in the form of NCDs.

    In September 2019, Kotak Mutual Fund received the full payment under the NCDs. The spokesman also mentioned that in April 2019, Konti Infrapower had made a separate payment to Kotak AMC Ltd that Kotak AMC was to reimburse to Konti Infrapower after reaching specific milestones.

    Kotak AMC has fallen behind in its payments, and the aforementioned funds are due and payable. Consequently, Konti Infrapower has petitioned Kotak AMC to start the corporate insolvency resolution process (CIRP). The matter is pending in the Mumbai NCLT.

  • IPO-Bound Meesho Cleared to Flip Back to India by NCLT

    According to regulatory records, Meesho, an e-commerce firm, made progress in its IPO process after the National Company Law Tribunal (NCLT) permitted the business to move its headquarters from Delaware, the United States, back to India.

    Meesho will now combine with the Indian company and finish the redomiciling procedure in India since the NCLT has given the company permission to demerge from the US-based organisation.

    If Meesho wishes to list on these bourses, it must completely return to India. In order to make it simpler for its portfolio firms to obtain funding and grow, Meesho’s original investor, Y Combinator, mandated that they be based outside of India in 2017.

    Meesho’s IPO by Diwali This Year

    Meesho started the process of returning to India in 2024. At the same time, it has been getting ready for its initial public offering (IPO) which is set to happen around Diwali this year.

    According to the filing, the brand has determined that there is no obstacle to the scheme’s approval because the petitioner (Meesho) companies have sufficiently addressed the objections and observations to the scheme that were received from the Registrar of Companies/Regional Director (RoC/RD) and the Income Tax Department.

    As per a media report, Meesho plans to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) within a few weeks after the flip back is finished.

    According to a Meesho representative, the filing is a component of the company’s continuous move to re-domicile in India. This step matches the company’s corporate structure with its daily operational footprint, he added, since most of the company’s operations, including those of its consumers, sellers, creators, and Valmo partners, are already situated here.

    Meesho Becomes a Public Entity

    Meesho’s board has authorised the company’s transformation into a public company in preparation for an IPO.

    In an extraordinary general meeting on June 5, the board of Meesho passed a special resolution to change the company’s name from “Meesho Private Limited” to “Meesho Limited”, according to the startup’s MCA filing.

     According to the petition, the conversion will provide Meesho more freedom to pursue access to the capital market and bring its corporate structure into compliance with the legal requirements for a business looking to go public.

    According to the filing, the firm intends to remain prepared from a regulatory and compliance standpoint to facilitate such an offering when judged appropriate, even if the board has not yet authorised or started the IPO process.

    In order to harmonise corporate and brand identity, the company rebranded its parent corporation more than a month ago.

  • Aakash Drags EY Into Byju’s Battle: NCLT Petition Adds New Twist to Edtech Dispute

    According to court documents examined by a media group, the conflict between Aakash Educational Services (AESL) and edtech company Byju’s has intensified.

    Aakash filed a strongly worded petition before the National Company Law Tribunal (NCLT) in Bengaluru, accusing international consulting firm Ernst & Young (EY) of professional misconduct and conflict of interest.

    In a June 1 implementation application, AESL has sought the tribunal to either declare EY LLP and its partner Ajay Shah respondents in the case or dismiss Byju’s company petition, which was filed under Sections 241 and 242 of the Companies Act and claimed oppression and mismanagement.

    AESL Allegations Against EY

    Through Shailendra Ajmera, Byju’s Resolution Professional (RP) and a senior EY employee, AESL claims that EY, which has provided the company with a wide range of strategic, financial, and compliance-related advice services, is now working against it.

     According to the application, this is a typical instance of conflict of interest and procedural abuse. EY designed and managed the very transactions that are currently under attack in the petition, including the issuance and conversion of non-convertible debentures (NCDs), equity restructuring, and internal governance issues.

    The petition states that EY provided advice to Davidson Kempner about the structuring and valuation of NCDs. Additionally, it offered tax and regulatory advice with the transfer of shares to the Manipal group.

    Furthermore, as recently as October 2024, EY participated in corporate strategy and internal board-level decisions at AESL.

    AESL Showcased Evidences to Validate its Claims

    In order to demonstrate EY’s purported participation in financial forecasts, liquidity management, and decision-making processes, AESL is displaying internal emails and advisory documents.

    According to AESL’s submission, the RP has concealed important information, is going outside his authority under the Insolvency and Bankruptcy Code (IBC), and lacks standing to submit this petition under the Companies Act.

    Ajmera’s status as RP is “severely compromised”, according to AESL, which has also threatened to take the issue to authorities, such as the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India (IBBI).

    The action signals a larger governance challenge in the continuing battle, as the RP wrote to the AESL board a few days ago to ask for clarification on the independence and nomination status of its directors.

    One of the main points of contention in the edtech giant’s continuous financial and legal issues is the dispute over Aakash, which Byju’s purchased in 2021 for $1 billion.

    The board of AESL is currently under the leadership of the Manipal company, which acquired a sizable interest by turning debt into equity.

    This submission challenges Byju’s petition’s validity as well as the advisers’ professional neutrality, setting up AESL for a full-scale legal and reputational onslaught. The RP and EY have not yet submitted a formal response to the implementation request.

  • NCLT Freezes Gensol’s Bank Accounts Over Financial Misconduct Allegations

    All of Gensol Engineering Limited’s and its affiliated companies’ bank accounts and lockers have been frozen and attached by the Ahmedabad-based National Company Law Tribunal (NCLT).

    The Ministry of Corporate Affairs (MCA) filed a complaint accusing the corporation of financial mismanagement and substantial corporate fraud, which prompted the action.

    The Reserve Bank of India (RBI) and the Indian Banks’ Association were able to move quickly to secure Gensol’s financial assets since the tribunal granted the government urgent interim relief. The goal is to stop additional financial abuse and evidence manipulation.

    The NCLT added that preliminary evidence points to serious wrongdoing on the part of the company’s promoters. It has mandated that all parties involved receive notices.

    SEBI Barring Jaggi Brothers From Accessing Securities Market

    Only a few weeks have passed since Anmol Singh Jaggi and Puneet Singh Jaggi, Gensol’s top promoters, were subject to severe action from the Securities and Exchange Board of India (SEBI).

    Both were prohibited from holding important managerial positions and from entering the securities market by SEBI on April 15.

    According to the regulator’s inquiry, Gensol misappropriated money obtained through an electric vehicle (EV) purchasing programme that was loan-financed.

    SEBI claims that Gensol borrowed INR 975 crore to buy 6,400 EVs but only bought 4,704 of them, costing INR 567.73 crore. Red flags regarding potential fund misappropriation were raised when more than INR 200 crore could not be accounted for.

    ICRA and Care Ratings Downgraded Gensol

    Credit rating agencies ICRA and Care Ratings downgraded Gensol’s INR 2,050 crore debt to default status in February, further compounding the company’s problems. This comprised about INR 400 crore in short-term borrowings and over INR 1,640 crore in long-term loans.

     Gensol allegedly produced fictitious letters asserting they had been consistent with their debt payments in response to enquiries into the abrupt downgrading. State-run lenders IREDA and Power Finance Corporation (PFC) were purportedly the senders of these letters; however, both subsequently denied supplying any such records.

    Additionally, investigations showed that despite the company’s repeated assurances to rating agencies that repayments were being made on schedule, it started to fall behind on payments as early as December 2024.

    Given these events, Gensol has been requested to delay a recently scheduled stock split. In order to properly examine the company’s and connected parties’ financial records, SEBI has additionally mandated the hiring of a forensic auditor.

    Gensol Engineering’s stock has dropped up to 94% from its peak due to persistent governance and financial problems.

    Gensol shares are now subject to the Enhanced Surveillance Measure (ESM) Stage 2 by SEBI, which limits trading to designated hours of the day.

    Due to serious liquidity problems, it is now impossible for the public and other investors to trade or sell their positions on a regular basis, which raises the possibility that they will be stranded with the shares.

  • BYJU’S Disappears from Play Store: EdTech Giant’s App Goes Offline

    The edtech startup BYJU’S has removed its Android app from the Play Store due to continued rumblings and insolvency procedures. A preliminary search of the Play Store yields no results for BYJU’S main app.

    Three additional apps, nevertheless, are still accessible: “Think and Learn Premium App”, “TL Pay”, and “TL Collect”, which are credit processing systems. Notably, the BYJU’S app is still accessible through the Apple App Store, but it has backend problems that prevent it from using some of its essential functions on other platforms.

    According to sources who spoke to a media outlet, the majority of the SEO-optimised pages on the BYJU’S website have disappeared, and current users can no longer access premium subscriptions or video material.

    Website Reduced to Basic Landing Page

    With essential features including free sessions (for children in classes four through nine) and the BYJU’S Early Learn programme, the edtech platform’s website has been reduced to a simple landing page and is presently displaying server failures.

     According to the article, the company’s cloud infrastructure is powered by Amazon Web Services (AWS), and the disruption was caused by unpaid invoices. According to various media reports, “disruptions in payments for its services” led to the app’s removal from the Play Store.

    BYJU’S has been attempting to put out fires on several fronts at the moment. The edtech business has been embroiled in a number of scandals over the last three years, including numerous rounds of layoffs, increasing losses, late financial statement filings, legal disputes, regulatory scrutiny, and more.

    The company’s founders have engaged in a verbal sparring match with its creditors and investors. The largest setback occurred when the business stopped paying on its $1.2 billion term loan B (TLB) in 2023, causing lenders to file lawsuits in several different countries.

    Why BYJU’s Witnessing Massive Decline?

    The Board of Control for Cricket in India (BCCI) filed a case with the National Company Law Tribunal (NCLT) last year to recover INR 158 Cr in unpaid debts related to a sponsorship agreement, putting the edtech giant, which was once valued at $22 billion, in the midst of insolvency proceedings.

    As more lenders joined and attempted to liquidate the business in order to recoup their unpaid debts, the situation swiftly got out of hand. Pankaj Srivastava was appointed by the tribunal as an interim resolution professional (IRP) to supervise the proceedings in the aftermath.

    Even that went wrong when the tribunal ordered Srivastava to face disciplinary action in January 2025 and overturned his decision to exclude Aditya Birla Finance and GLAS Trust, which represents a group of BYJU’S TLB creditors, from the committee of creditors (CoC).

    Srivastava allegedly informed the NCLT that the law firm Khaitan & Co. intimidated and threatened him to designate EY as the process advisor for the edtech firm’s probe, even though Shailendra Ajmera was named the new IRP.

  • Amazon India Unifies E-Commerce and Logistics Arms Amid Strategic Overhaul

    According to Amazon’s regulatory filing with the Registrar of Companies (RoC), the merger was given temporary clearance by the Bengaluru bench of the National Company Law Tribunal (NCLT) on February 5, 2025.

     In a second filing with the NCLT, the e-commerce giant stated that the action will assist Amazon in streamlining the business operations of the two companies and lowering legal and tax compliance.

    It added that the proposed merger would enable the transferor company’s assets and reserves to be consolidated with the Transferee Company (Amazon Seller Services), strengthening the latter’s finances and enabling it to make more significant business-related investments.

    A representative for Amazon India responded to a question from the media by stating that the merger will streamline the organisation’s structure.

     Amazon has several subsidiaries worldwide, just like the majority of international corporations, and we frequently assess our organisational structure. According to the spokeswoman, the goal of this transaction is to streamline our organisational structure.

    Financial Outlook of Amazon Transportation Services (ATS) and Amazon Seller Services

    ATS was founded in 2012 and offers courier services, cargo transportation, logistics, and associated services, such as the pickup, delivery, and transportation of commodities, papers, goods, retail, and household items both domestically and abroad.

    Although Amazon continues to generate the majority of its revenue, it also provides logistics services to third-party clients. In the fiscal year 2023-24 (FY24), ATS recorded a net loss of INR 80.3 Cr, a 6.3% decrease from the INR 85.7 Cr loss it recorded the previous year.

    From INR 4,543.3 Cr in FY23 to INR 4,888.9 Cr in the year under review, operating revenue increased by about 8%.

    However, Amazon Seller Services’ net loss decreased by 29% from INR 4,854.1 Cr in FY23 to INR 3,469.5 Cr in FY24. During the year, operating revenue increased by 11% to INR 25,406 Cr from INR 22,198 Cr.

    Other Services Offered by Amazon

    In addition to Amazon Seller Services and ATS, the internet giant provides Amazon Pay Wallet and Pay Later services in India via a different company. Additionally, it runs its B2B wholesale platform, Amazon Wholesale.

    According to a media report published in March 2025, Amazon plans to spin off its Indian business with an eye towards going public here. However, the e-commerce giant has no intentions to go public in India, as per various media reports.

    Flipkart, Amazon’s rival, is reportedly working on plans for its highly anticipated initial public offering (IPO) and has received board approval to move its headquarters from Singapore to India.

    Meesho is also preparing to go public. With an anticipated $1 billion IPO by year’s end, Meesho has hired bankers to provide advice.