India’s largest independent registrar, Net4 India suspended due to bankrupt. The registrar found insolvent by a local court when it did not pay back $28 million in bank loans.
Largest registrar – Net4 India suspended due to bankrupt
The registrar has the right to sell the gTLD domains which were suspended by ICANN. According to the legal papers, the bankrupt was a series of loan that the company took from the State Bank of India between 2002 and 2012.
When the company was unable to pay the loans back in 2014. The debt was received from SBI by Edelweiss Asset Reconstruction, India’s financial services conglomerate. The company specializes in buying debt cheaply then recovering it from courts.
Edelweiss won the case in March 2019
A few years ago, Edelweiss sued Net4 to get its money back which was taken as loan and in March 2019 it won the case.
Net4 debt is $28 million
The outstanding debt in 2017 was almost Rs 1,940,860,284 (two billion rupees), which is now $28 million at the current rate.
ICANN tried to contact with the Net4’s management to check whether the company will come back again into action. ICANN says that it can terminate Net 4 India contracts if it fails to clear the insolvency in more than 30 days.
RAA was suspended from June 21 to September 19
When it failed to do so, its RAA was suspended from June 21 to September 19. Net4 will not be able to do its business such as sell new domain registrations or accept incoming transfers. It shall also post the notice on their website for the same.
ICANN may start its termination process if it doesn’t demonstrate the compliance by August 28th.
Net4 is the largest ICANN accredited registrar
Net4 is the largest ICANN accredited registrar in India which have a number of registered gTLD domains excluding the LogicBoxes, Public Domain Registry and many such affiliated dummy accreditation which is owned by a US-based endurance international.
Till the end of February, it had over 100,000 gTLD domains under the management. The gTLDS includes almost .com and other legacy gTLDS.
In many cases, it is also seen listed in India’s National Stock Exchange and the Bombay Stock Exchange but was removed last year.