New Delhi
Big news is coming about Reliance Capital. The National Company Law Tribunal (NCLT) owned a debt -ridden Reliance Capital to the banks and monitoring committee IndusInd International Holdings Ltd. (IIHL) has been directed to resolve all issues related to the process by 12 March to transfer. The Mumbai bench of the tribunal on Wednesday heard the matter related to the solution process of Reliance Capital and asked all the parties to complete all pending procedural aspects before the next hearing on 12 March.
What is detail
A spokesman for the IndusInd International Holdings said that IIHL voluntarily offered to show Rs 2,750 crore to the equity capital item in the account of Reliance Capital to showcase its commitment to fulfill the transaction. The tribunal accepted the proposal. The spokesman said that the court directed all the concerned parties including the lender committee, monitoring committee, IIHL and administrator to complete all pending procedural formalities by 12 March.
Meetings in several phases
Since the last hearing of the National Company Law Tribunal on 10 February, seven meetings of the monitoring committee were held at various stages of implementation of the approved resolution scheme. IIHL emerged as a successful applicant in April 2023 with a highest bid of Rs 9,650 crore in April 2023 to acquire a distressed financial services company under the insolvency process (CIRP) of IIHL Insolvency and Debt Laying Code (IBC). With the acquisition, IIHL aims to increase the bank, financial services and insurance (BFSI) business in the next five years to more than three times the $ 50 billion. It is currently $ 15 billion (till 30 September, 2024). IIHL has obtained approval from Reserve Bank of India Insurance Regulatory and Development Authority (IRDA) and share and commodities markets earlier this year.
What is the matter
In November 2021, the RBI removed the board of directors of the company of Anil Dhirubhai Ambani Group over the issues and payment lapses. The central bank appointed Nageshwar Rao Y as Administrator, who invited dialects in February 2022 to acquire the company.
