The Reserve Bank on Friday authorized the resolution plan for debt-ridden Reliance Capital. The transfer paves the best way for IndusInd International Holdings Ltd (IIHL), the Hinduja Group agency, to accumulate the corporate.
This is to tell you that the Administrator of Reliance Capital Limited is in receipt of “No objection” vide letter dated November 17, 2023, from the Reserve Bank of India, the corporate stated in a regulatory submitting.
IIHL had emerged as the best bidder with a suggestion of Rs 9,650 crore to take over debt-ridden Reliance Capital within the second spherical of the public sale concluded in April. The Reserve Bank of India (RBI) on November 29, 2021, outmoded the board of Reliance Capital in view of cost defaults and critical governance points.
The RBI appointed Nageswara Rao Y because the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the agency.
Reliance Capital is the third giant non-banking monetary firm (NBFC) towards which the central financial institution has initiated chapter proceedings underneath the Insolvency and Bankruptcy Code (IBC). The different two have been Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
The central financial institution subsequently filed an utility for initiation of CIRP towards the corporate on the Mumbai bench of the National Company Law Tribunal.
In February final yr, the RBI-appointed administrator invited expressions of curiosity for the sale of Reliance Capital.
