Kohinoor Foods Faces Huge Debt Recovery Tribunal Order; Contesting INR 926 Crore Payment Demand

Kohinoor Foods Ltd has received a significant order from the Debt Recovery Tribunal (DRT) III, Delhi, dated October 28, 2025, directing payment of INR 926.13 crores to consortium banks within 30 days. This demand excludes amounts already recovered from mortgage property sales, with interest accruing at 11% p.a. from the case filing date until realization. The order warns of enforced recovery via hypothecated assets if payment is not met by the deadline. The company is currently contesting the order through legal channels.

 

Previously, Kohinoor Foods sealed a one-time settlement (OTS) with the banks on December 21, 2024, settling INR 205 crores out of a due INR 227.45 crores plus applicable interest. Although the company requested extensions to pay the remaining balance, two consortium banks have declined citing non-compliance with OTS terms. Kohinoor Foods has reiterated its appeal to all lenders for extended payment terms and is actively seeking an extension of the OTS period.

 

The financial and operational implications are substantial as the tense situation unfolds, with the company mandated to appear before the Recovery Officer on December 22, 2025. The ongoing tribunal proceedings will determine the next developments for Kohinoor Foods.

 

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Sources: Debt Recovery Tribunal III Delhi, Official Company Filings, Verified Banking Consortium Communications