NCLT to Hear Hinduja Group’s IIHL Plea for Reliance Capital Resolution Deadline Extension on June 20
The National Company Law Tribunal (NCLT) will review IIHL’s plea on June 20 for more time to finalize the resolution of Reliance Capital. IIHL, part of the Hinduja Group, won the bid to resolve the financial issues of Reliance Capital, which belongs to the Anil Ambani Group.
Earlier, on February 27, 2024, the NCLT Mumbai approved a resolution plan worth Rs 9,650 crore for Reliance Capital, setting a deadline of May 27, 2024 for completion. IIHL has now asked for a 90-day extension beyond this deadline to implement the plan.
Reliance Capital, in a regulatory filing, stated that IIHL, as the successful applicant under the Insolvency and Bankruptcy Code, sought this extension under specific legal provisions. The matter was discussed in a hearing on June 13, 2024, and the NCLT directed it to be scheduled for further consideration on June 20.
Reliance Capital faced financial challenges, leading the Reserve Bank of India to intervene in November 2021 by replacing its board due to governance issues and payment defaults. This action followed by inviting bids in February 2022 to take over the company, which had accumulated debts exceeding Rs 40,000 crore. Initially, four applicants submitted resolution plans, but all were rejected by the creditors for offering lower values. Subsequently, a challenge process began, involving IIHL and Torrent Investments among others.
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