Online lottery distributor Playwin defaults on Loan Repayments, Insolvency Petition filed

Essel Group promoted Pan India Network Limited, which distributes online lotteries of various state go🔜vernments under the ‘Playwin’ brand has defaulted on payment of variousꦐ dues and loans of operational creditors.

As per the order of the Mumbai bench of the National Company Law Tribunal (NCLT), Pan India Network has defaulted on loans exceeding Rs. 1.60 crℱores given to it by a private company, S𒅌agar E Shop Private Limited.

Pan India ‘candidly admitted’ its default on payment of loans and inability to pay the same, po📖st which the NCLT on 14th October, 2019 ordered initiati♉on of corporate insolvency resolution process against the Corporate Debtor, Pan India Network Limited.

NCLT als𒐪o barred any institution of suits against Playwin or alienation of assets, legal rights or beneficial interests by the company until completion of the insolvency resolution process𒅌.

As per a notice listed on the Playwin website and also published in newspaper💝s♉, creditors of the company, including financial creditors were called upon by the interim corporate insolvency resolution professional to submit their claims on or before 28th October, 2019.

Playwin’s website currently states ‘due to technical issues our draws are not configuredꦚ for selling. We will update you soon🐽.’

It is believed that the 28% Goods and Services Tax (GST) imposed on face value of lottery tickets by the GST Council in 2017, which industry experts believe was unsustainable, resulted in massive declin𓃲e of salesඣ of private lottery distributors leading🦩 to downsizing and shutting down of Playwin’s operations.

The broader crisis in Playwin’s parent Essel Group and inability to fully of its group companies also possibly precipitated♉ the crisis for the lottery distributor resulting in its ultimate closure.