Hinduja-owned IndusInd International Holdings (IIHL)’s ₹9,861 crore acquisition of Reliance Capital has run into a problem due to over ₹1,000 crore in unpaid GST dues owed by Reliance Capital’s insurance companies.
Key Points:
- IIHL has asked to adjust this tax amount from the final payment to creditors, but creditors are resisting.
- The GST dues could increase due to penalties, making both sides hesitant to compromise.
- The National Company Law Tribunal (NCLT) may need to step in to resolve this issue since the deal has been stuck for over a year.
- IIHL has stated it will withhold the tax amount until the issue is resolved, further delaying the deal.
- The next NCLT hearing on this matter is set for September 19.
This tax dispute has become the biggest obstacle in completing the acquisition, with no resolution yet in sight.
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