<p>On Tuesday, the National Company Law Tribunal (NCLT) granted approval to IndusInd International Holdings Ltd (IIHL), a Hinduja Group company, for its resolution plan to purchase the insolvent Reliance Capital Ltd. for Rs 9,650 crore. The tribunal has determined that the resolution plan may be put into action ninety days after it has been approved.</p>
<p><img decoding=”async” class=”alignnone wp-image-453894″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-750×425.jpg” alt=”theindiaprint.com hindujas rcap resolution proposal is approved by nclt newindianexpress 2024 01 035″ width=”991″ height=”562″ title=”Hinduja's RCap resolution proposal is approved by NCLT 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-750×425.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-1024×580.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-768×435.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035-150×85.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-hindujas-rcap-resolution-proposal-is-approved-by-nclt-newindianexpress-2024-01-035.jpg 1200w” sizes=”(max-width: 991px) 100vw, 991px” /></p>
<p>Reliance Capital said in a regulatory filing on Tuesday that the NLCT, Mumbai, had orally pronounced an order dated February 27, 2024, approving the resolution plan submitted by IndusInd International Holdings with respect to the corporate insolvency resolution process of the company under section 31 of the IBC. This was in continuation of our intimation via our disclosure dated February 26, 2024.</p>
<p>In November 2021, the board of Reliance Capital was succeeded by the RBI on issues pertaining to governance and firm payment defaults. Nageswara Rao Y was named administrator by the central bank, and in February 2022, he issued a call for bids to become the company’s new owner.</p>
<p>Four applicants submitted offers with resolution plans to Reliance Capital, which had debt above ~40,000 crore: Torrent Investments, IIHL, Cosmea Financial-Piramal Group, and Oaktree Capital. Torrent Investments, located in Ahmedabad, and IIHL took part in a challenge process after the committee of creditors (CoC) rejected all four proposals for lower offer prices.</p>
<p>IIHL, the private lender IndusInd Bank’s promoter, made an offer of Rs 9,861 crore to buy Reliance Capital in July 2023. The administrator accepted the price. With 99% of creditors voting in favor, Hinduja’s offer was overwhelmingly accepted. The lenders will also get the extra Rs 500 crore in cash held by Reliance Capital.</p>
<p>Torrent Investments, meanwhile, is contesting both Hinduja’s proposal and the bankruptcy procedure.</p>
