Lenders of debt-ridden Reliance Capital (RCAP) have asked the Hinduja Group arm IndusInd International Holdings Ltd (IIHL) to expedite the process of obtaining necessary regulatory approvals and stick to the resolution plan deadline of May 27.
According to PTI, at a meeting held on Friday the lenders of Reliance Capital have asked IndusInd International Holdings to make a payment of ₹9,650 crore by the due date.
ALSO READ: IRDAI raises concern over Hinduja Group-led IIHL bid for Reliance Capital
It is to be noted that the National Company Law Tribunal (NCLT)-Mumbai, while approving the resolution plan on February 27, directed the IIHL to implement the resolution plan within 90 days i.e. May 27.
As per the resolution plan, the Hinduja Group company has to make an upfront payment of ₹9,650 crore to the Reliance Capital lenders.
The lenders have expressed concerns over the slow progress towards the implementation of RCAP resolution plan, as IIHL is yet to receive the crucial IRDAI approval, said the PTI report citing sources.
The IRDAI (Insurance Regulatory and Development Authority of India) has raised concerns over the proposed corporate structure for the transfer of RCAP’s insurance businesses — i.e. Reliance General Insurance and Reliance Nippon Life Insurance — to IndusInd International Holdings.
IIHL is yet to address those concerns.
ALSO READ: NCLT approves Hinduja’s acquisition of bankrupt Reliance Capital
The Reserve Bank of India (RBI) approval on transfer of Reliance Capital business to IIHL granted on November 17 is valid for a period of only six months and will expire on May 17.
In case, IIHL fails to complete the resolution process within the given timeline, it will have to give reasons for the same to the RBI while reapplying for fresh approval.
In November 2021, the RBI superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.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.
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Published: 28 Apr 2024, 07:47 PM IST