AMCON drag owners of Milan Industries to Court, initiates bankruptcy proceedings over N42 billion debt

The Asset Management Corporation of Nigeria (AMCON) has taken legal action against Rajesh Valecha, Chairman of Milan Industries Limited, and four other directors over an alleged failure to repay a staggering N42 billion debt.

The move comes as AMCON ramps up efforts to recover outstanding loans.

According to court documents filed before two judges of the Federal High Court in Lagos, the additional directors named in the petitions are Ramesh Valechha, Vikram Valechha, Odunlami Bayo, and Akin Femiwa Akinsola.

These individuals are now facing legal repercussions for the debt accrued by Milan Industries Ltd and Milan Nigeria Ltd.

The debt, totaling N41,511,758,031.14, originated from loan agreements with Skye Bank (now Polaris Bank) between 2010 and 2012.

AMCON asserts that the funds were primarily used for the development of a 361-room hotel on Kofo Abayomi Street in Victoria Island, Lagos, formerly known as Intercontinental Hotel and now rebranded as Lagos Continental Hotel.

Kunle Ogunba (SAN), the attorney representing AMCON, emphasized the obligation of the debtor companies and their directors to repay the outstanding debt.

He cited provisions of the Asset Management Corporation (Amendment No.2) Act, 2019, empowering AMCON to recover debts from individual shareholders and directors of debtor companies.