Workers union files complaint against HNG's suspended directors accused of fund diversion

New Delhi, Sep 23 (PTI) HNG Industries Thozhilalar Nala Sangam, the registered trade union of Hindusthan National Glass & Industries Ltd (HNG), has filed a complaint to multiple agencies against suspended directors Sanjay Somany and Mukul Somany, accusing them of diverting Rs 42.46 crore and demanding urgent legal action against them.

It has also warned that the two are a 'grave flight risk' who may abscond, as they are allegedly disposing of assets and moving funds beyond the reach of creditors.

The complaint further holds Resolution Professional (RP) Girish Juneja responsible for failing to act on binding judicial directions.

In representations made to the CBI, ED, SFIO, Economic Offences Wing, Finance Ministry, Home Ministry, and Customs recently, the union cited the NCLT Kolkata Bench order of September 12, 2025, which said, "we find that the total amount of Rs 42.46 crore has been misappropriated and diverted by the respondents with the intent to defraud the creditors".

The union has demanded the immediate arrest, seizure of passports, issuance of Look-Out Circulars, freezing and attachment of assets in accordance with the law, thereby upholding the sanctity of the judicial process and protecting the legitimate rights of creditors and workers alike.

The complaint referred to a BDO India LLP forensic audit (September 9, 2022), which flagged fraudulent vendor transactions through Durvish Vyapaar, Rafbrix International, Maithan Ceramic and Mould Equipment. The NCLT had directed directors to repay the money within two months or face recovery from their properties, and ordered the RP to initiate prosecution under Section 69 of the IBC.

The union claimed that despite clear judicial directions, there is no clarity whether prosecution has been filed at all, and certain members of the Committee of Creditors, owing to past association with the accused, are restraining or obstructing the RP.

The union also said, “Our members are reeling under unpaid wages, arrears of provident fund, frozen social security benefits, and grim uncertainty about their livelihoods. The siphoning of such massive sums has caused acute distress to thousands of families facing deprivation, hunger, and lack of healthcare.” Debt-ridden HNG was admitted for resolution by the National Company Law Tribunal (NCLT) in October 2021 following a petition by lenders.

In August 2025, the NCLT's Kolkata bench approved the resolution plan submitted by Independent Sugar Corporation Ltd (INSCO) for the revival of HNG following the Supreme Court direction.

At the end of this 45-day monitoring phase, complete control of HNG will pass on to the Madhvani Group. The Monitoring Committee will step down, and a new board nominated by the Group will take charge.

According to the NCLT order, the resolution plan involves a total investment of Rs 2,250 crore, comprising Rs 1,900 crore in upfront cash, Rs 350 crore deferred over three years to CoC and a 5 per cent equity to creditors. PTI DP DP SHW