The National Company Law Tribunal (NCLT) in Mumbai has directed IndusInd International Holdings Ltd (IIHL), owned by the Hinduja Group, to complete the resolution plan for Reliance Capital by May 27.
The tribunal’s decision came after an application by the administrator of Reliance Capital, appointed by the Reserve Bank of India. The administrator requested a correction in the previous order regarding the 90-day period for implementing the resolution plan.
The division bench of Justice Virendra Singh G Bisht and technical member Prabhat Kumar accepted the application in an oral order.
The resolution plan, valued at Rs 9,650 crore, was approved by the tribunal on February 27. This plan aims to address the financial issues of Reliance Capital, which was previously under the control of Anil Ambani.
The 90-day period for implementing the plan will begin after fulfilling certain conditions, such as obtaining approvals from regulatory authorities like IRDAI, SEBI, and RBI.
Wednesday’s order means IIHL must complete the process and make payment by May 27. However, Torrent Investments, another bidder for Reliance Capital, has challenged the sale process in the Supreme Court, where the matter is still pending.
Despite this, the lenders are keen to finalize the transaction within this fiscal year. They have urged the Hinduja Group to implement the resolution plan before the end of this month, even though the bankruptcy court had initially given the winning bidder 90 days to complete the process.
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