Bengaluru, June 13 -- In a major setback for Congress MLC Naseer Ahmed, the National Company Law Tribunal (NCLT) has declared him insolvent over default on bank loans and interest totalling Rs 1,454.71 crore. The order puts his Legislative Council membership and voting rights at risk.

The case relates to a garments limited, where Naseer Ahmed was Managing Director and his wife Ayesha Naseer and son Avez Ahmed were directors. The company had taken loans from SBI, Canara Bank, and IDBI Bank, with Naseer, his wife, and son standing as personal guarantors.

After the company incurred losses, it failed to repay dues. Despite recovery efforts, the banks were unable to recover the money and classified the loans as Non-Performing Assets (NPA). T...