On February 9, the National Company Law Tribunal (NCLT) in Mumbai admitted an insolvency plea against Sporta Technologies Private Limited, the parent company of Dream11, owing to a default in rent payment amounting to Rs 7.6 crore.
According to reports, the insolvency stems from a lease and licence agreement dated 2019, with Sporta Technologies failing to meet the monthly licence fee since March 2020. Despite a demand notice issued in 2021, Sporta Technologies did not comply, leading to the insolvency petition.
Sporta Technologies attributes the default to challenges arising from the Covid-19 pandemic and confusion over ownership with a third party.
The tribunal has appointed Madan Bajrang Lal Vaishnawa as the Interim Resolution Professional (IRP) to oversee the company’s affairs.