Nearly one-third employees of Smaaash Entertainment Pvt. Ltd., which is under the Insolvency & Bankruptcy Code (IBC) proceedings, resigned on a single day, raising a question mark on the revival of the sports entertainment company.
Precisely 82 employees out of 300 employees of the company tendered their resignations about a week ago alleging “harassment and intimidation” by the Resolution Professional (RP) and “people authorised by him.”
The Mumbai-based employees are from across various levels, a company official said asking not to be named.
“There was constant harassment by way of snatching away of mobile phones, selectively not paying salaries and threatening with criminal action for not cooperating…. This led to the mass resignations,” the official said adding this move would impact the operations and delay revival.
In an email response, Bhrugesh Amin, RP for Smaassh Entertainment said, “Unfortunately, I would not be able to answer your questions at this stage of the resolution process, owing to confidentiality.”
“In my capacity as Resolution Professional, I am obliged to respect the confidential nature of the process and uphold it,” he added.
The company promoted by MSME entrepreneur Shripal Morakhia, who had earlier promoted SSKI-Sharekhan, was admitted into IBC process by the Mumbai bench of the National Company Law Tribunal (NCLT) in May 2022.
Edelweiss Asset Reconstruction Company Ltd. had moved the NCLT following default of ₹292.4 crore by Smaaash Entertainment, which had suffered financial losses during the pandemic.
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