NCLT approves Hinduja Group firm IndusInd International Holdings' resolution plan for Reliance Capital

The National Company Law Tribunal on Tuesday approved Hinduja Group firm IndusInd International Holdings' Rs 9,650-crore resolution plan for Reliance Capital.

The Mumbai bench of the NCLT approved the plan submitted by IIHL (IndusInd International Holdings Limited) in June 2023 in the second round of bidding for the debt-laden company. A detailed order in the matter is expected later in the day.

In November 2021, the Reserve Bank had superseded the board of the Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.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 the four plans for lower bid values and a challenge mechanism was initiated where IIHL and Torrent Investments participated.

In June 2023, the Hinduja Group firm was selected by the committee for its bid of Rs 9,661 crore upfront cash. Reliance Capital's cash balance of an additional Rs 500 crore would also go to the lenders.