RCap administrator requests 90-day extension from NCLT for resolution plan implementation

The administrator of debt-ridden Reliance Capital (RCap) has moved NCLT, seeking a 90-day extension beyond the deadline to implement the resolution plan submitted by the successful bidder, the Hinduja Group.

The deadline for the implementation of the approved resolution plan was May 27, 2024.

“This is to inform the stakeholders that an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016 for seeking an extension of 90 days from May 27, 2024, for the implementation of the Approved Resolution Plan was filed before the NCLT by the successful resolution applicant,” the company said in a regulatory filing.

The National Company Law Tribunal (NCLT) Mumbai on February 27 approved the resolution plan of IndusInd International Holdings Ltd.

The tribunal had approved Hinduja Group firm IndusInd International Holdings Ltd’s (IIHL) ₹9,650-crore resolution plan for Reliance Capital.

In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.

Reliance Capital had a debt of over ₹40,000 crore, and four applicants had initially bid with resolution plans. However, the committee of creditors rejected all four plans for lower bid values, and a challenge mechanism was initiated in which IIHL and Torrent Investments participated.