RBI clears resolution plan for debt-ridden Reliance Capital
The Reserve Bank on Friday approved the resolution plan for Debt Relief Capital. The move paves the way for IndusInd International Holdings Ltd (IIHL), a Hinduja Group firm, to acquire the company.
This is to inform you that the Administrator Reliance Capital Limited is receiving a “No Objection” letter dated November 17, 2023, from the Reserve Bank of India, the company said in a regulatory filing.
IIHL emerged as the highest bidder with a bid of Rs 9,650 crore to take over Debt-riding Reliance Capital in the second round of the auction that concluded in April. On November 29, 2021, the Reserve Bank of India (RBI) replaced the Reliance Capital board in light of payment defaults and serious governance issues.
The RBI appointed Nageswara Rao Y as the administrator for the Corporate Insolvency Resolution Process (CIRP) of the firm.
Reliance Capital is the third major non-banking finance company (NBFC) for which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
The central bank subsequently filed an application for CIRP initiation against the company at the Mumbai bench of the National Company Law Tribunal.
In February last year, the administrator appointed by the RBI invited expressions of interest to sell Reliance Capital.
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