Reliance Home Finance Initiates Voluntary Liquidation, Receives RBI Approval for CoR Surrender

Reliance Home Finance, a former Anil Ambani company, has received approval from the Reserve Bank of India (RBI) to proceed with its decision to voluntarily exit the home finance business. Authum Investment and Infrastructure Ltd, the entity that acquired Reliance Home Finance a year ago, has proposed the voluntary liquidation of the company.

In a disclosure to the stock exchange, Reliance Home Finance revealed that the RBI, in an order dated January 25, has sanctioned the company’s application for the surrender of its Certificate of Registration (CoR) due to the voluntary exit from the housing finance business.

As part of the proposed resolution plan, the housing finance company plans a slump sale of all its assets to Reliance Commercial Finance Ltd, an unlisted entity also acquired by Authum Investment.

Under the resolution plan, Authum Investment acquired Reliance Home Finance’s debt of Rs 11,540 crore for Rs 3,351 crore.

According to a Brickworks rating report dated November 3, 2023, “identified assets and liabilities are transferred by Reliance Home Finance to Reliance Commercial Finance for a total consideration of Rs 180 crore.”