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NCLT Mumbai Approves Parle’s Composite Demerger Scheme
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NCLT Mumbaicorporate

NCLT Mumbai Approves Parle’s Composite Demerger Scheme

October 5, 2026

NCLT Mumbai sanctioned Parle’s composite scheme involving two demergers and an amalgamation, with safeguards for Income Tax Department rights. The structure aims to streamline business operations.

NCLT Mumbai Sanctions Parle’s Multi-Step Corporate Restructuring

The NCLT, Mumbai, has approved a composite scheme of arrangement by Parle Products Ltd involving two demergers followed by an amalgamation. The restructuring is aimed at optimizing group business operations and enhancing shareholder value.

In its order, the tribunal emphasized that the scheme is just and equitable, noting that it preserves the rights and obligations of the Income Tax Department. The NCLT relied on Section 230–232 of the Companies Act, 2013, confirming compliance with procedural, disclosure, and public interest requirements.

Corporate lawyers should note the increasing judicial acceptance of multi-step restructuring under a single composite scheme. Early engagement with tax authorities to record positions on continuity of assessments and losses is prudent in such complex reorganizations.

Citations

  • Companies Act, 2013, Sections 230-232
Practice Areas:corporate

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