7/8/2024, 10:52:02 am

NCLT rejects merger approval over tax avoidance, money laundering concerns

The National Company Law Tribunal has rejected the merger of three companies due to concerns that the proposed amalgamation aimed to legitimize suspicious transactions, avoid taxes, and launder money. The tribunal found that the merger was intended to artificially increase the value of shares and avoid tax payments, and therefore, it was "unfair, unreasonable, and not in the public interest".