BENGALURU: Even as Congress MLC Naseer Ahmed has been declared “bankrupt” by the National Company Law Tribunal (NCLT), Bengaluru bench, he is unlikely to get disqualified from his MLC post.
Naseer will retire on June 30, 2026.
“We are not concerned about him being declared bankrupt as it is his personal issue. We cannot initiate action suo motu unless someone lodges an official complaint with us. Even then, we will initiate certain procedures by issuing him a notice and giving him three days to reply.
The House is supreme than the court,” Karnataka Legislative Council Chairman Basavaraj Horatti told The New Sunday Express. Horatti cited a case of a Uttar Pradesh MLA in 1965 insulting the Speaker by saluting the latter showing his back. The issue reached the President, eventually proving that the House is supreme.
Naseer told The New Sunday Express that he will challenge the NCLT order before the National Company Law Appellate Tribunal (NCLAT), Chennai bench. He will seek the stay against the proceedings of NCLT. “I will consult legal experts on Sunday to discuss in detail and decide on Monday,” he said.
Naseer was declared bankrupt under the Insolvency and Bankruptcy Code for allegedly failing to repay Rs 1,454 crore outstanding loan of his erstwhile company Scotts Garments Limited, Bengaluru, which is now liquidated.
NCLT has appointed Insolvency Professional Ravindra Beleyur as Bankruptcy Trustee under Section 125 of the IBC to take custody of all the assets/estates of Naseer, his wife Nuzhat Aisha Naseer and son Awaiz Ahmed, as they are guarantors against the loan. Nuzhat and Awaiz were directors of the company, while Naseer was managing director before it was liquidated following a liquidation proceedings initiated in 2019.
It is said that he may get disqualified as an MLC under Section 140 of the IBC and Article 191(1)(c) of the Constitution, which disqualifies an MLA or MLC if he is an ‘undischarged insolvent’.
Naseer was sacked as political secretary by then CM Siddaramaiah for his alleged anti-party activities during the Davangere South Assembly bypolls.