Lenders of Reliance Capital accused Hinduja Group company, know what they said
Lenders of debt-ridden Reliance Capital Limited (RCAP) have alleged that Hinduja Group company IIHL is adopting delay tactics, due to which the implementation of the resolution plan is also getting delayed. On the other hand, the Hinduja Group company denied the allegations and said that it was following proper procedure. Mauritius-based IndusInd International Holdings Limited (IIHL) had emerged as the successful bidder for the acquisition of Reliance Capital.
NCLT had approved the resolution plan of Rs 9,861 crore
The Mumbai bench of NCLT had on February 27, 2024, approved IIHL’s Rs 9,861 crore resolution plan for the debt-ridden financial company. According to sources, the lenders claimed that IIHL took the step of seeking approval from the Department of Industrial Policy and Promotion (DIPP) later. He said this was also not part of the conditions set by NCLT while approving the resolution plan on February 27, 2024. According to sources, 90 days have passed since IIHL submitted its application to DIPP, but the approval is still pending.
What did IIHL sources say?
IIHL sources said, “All the allegations are completely false, baseless and an attempt to defame and disrupt the resolution process.” Company sources said, “All the allegations are false and false. There is no reason for IIHL to delay the implementation of the scheme, especially when IIHL has already deposited Rs 2,750 crore with the CoC.” He said that contrary to the allegations, it is in the interest of IIHL to take over the company by completing the resolution plan as soon as possible, so that the value erosion on a daily basis can be stopped. DIPP’s approval is required because some of IIHL’s shareholders are residents of Hong Kong, a special administrative region controlled by China. According to Press Note 3, if any entity, citizen or permanent resident of any country sharing land border with India (China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan) invests in India, then it will have to obtain permission from the government for its Approval will have to be taken.
