The Reserve Bank approved the resolution plan for
debt-ridden Reliance Capital. The move paves the way for IndusInd International
Holdings Ltd-IIHL, the Hinduja Group firm, to acquire the company.
This is to inform you that the Administrator of
Reliance Capital Limited is in receipt of “No objection” vide letter dated
November 17, 2023, from the Reserve Bank of India, the company said in a
regulatory filing.
IIHL had emerged as the highest bidder with an offer
of ₹ 9,650 crore to take over debt-ridden Reliance Capital in the second round
of auction concluded in April.
The Reserve Bank of India (RBI) on November 29, 2021,
superseded the board of Reliance Capital in view of payment defaults and
serious governance issues.
The RBI appointed Nageswara Rao Y as the administrator
in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.
Reliance Capital is the third large non-banking
financial company (NBFC) against which the central bank has initiated
bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). The
other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
The central bank subsequently filed an application for
initiation of CIRP against the company at the Mumbai bench of the National
Company Law Tribunal.
In February last year, the RBI-appointed administrator
invited expressions of interest for the sale of Reliance Capital.
PTI
