The Reserve Bank on Friday accepted the resolution plan that heavily indebted Reliance Capital had presented. The action makes it possible for the Hinduja Group entity, IndusInd International Holdings Ltd. (IIHL), to purchase the business.
This is to notify you that, according to a regulatory filing from the business, the Reserve Bank of India has received a “no objection” letter dated November 17, 2023, addressed to the Administrator of Reliance Capital Limited.
In April, IIHL emerged as the highest bidder in the second round of auctions, offering ₹ 9,650 crores to acquire the indebted Reliance Capital.
Due to serious issues with governance and payment defaults, the Reserve Bank of India (RBI) took over the Reliance Capital board on November 29, 2021.
The RBI appointed Nageswara Rao Y as the company’s Corporate Insolvency Resolution Process (CIRP) administrator.
The third sizable non-banking financial firm (NBFC) for whom the central bank has filed for bankruptcy under the Insolvency and Bankruptcy Code (IBC) is Reliance Capital. Srei Group NBFC and Dewan Housing Finance Corporation (DHFL) were the other two.
Subsequently, the central bank applied to the Mumbai bench of the National Firm Law Tribunal to initiate CIRP against the firm.
The administrator designated by the RBI requested expressions of interest for the sale of Reliance Capital in February of last year.
