Reliance Capital seeks 10-day extension to transfer assets to Hinduja group

The administrator of debt-ridden Reliance Capital (RCAP) has approached the Reserve Bank to seek a 10-day extension of the deadline to transfer businesses to a successful bidder — a Hinduja Group company, sources said.

The deadline for the transfer of Reliance Capital’s asset to Aasia Enterprises, a Hinduja Group company, ended on Friday, they added.

The RBI approval granted on November 17, 2023, was valid for only 6 months.

The RCAP Administrator has sought an extension of 10 days till May 27 from the RBI, sources said.

It may be mentioned that May 27 also happens to be the deadline for the implementation of the resolution plan by the Hinduja Group company as per the NCLT order.

 

The National Company Law Tribunal (NCLT) Mumbai, while approving the resolution plan on February 27, directed IndusInd International Holdings Ltd to implement it within 90 days ending May 27.

The tribunal had approved Hinduja Group firm IndusInd International Holdings Ltd’s Rs 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In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.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 Rs 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.

First Published: May 17 2024 | 10:09 PM IST