IANS | 19 Nov, 2023
The Reserve Bank of India approved the resolution plan for debt-ridden Reliance Capital on Friday.
The move finally clears the path for Hinduja Group entity --
IndusInd International Holdings Ltd (IIHL) -- to acquire the company.
This
is to inform you that the Administrator of Reliance Capital Limited is
in receipt of "No objection" vide letter dated November 17, 2023, from
the Reserve Bank of India, the company said in a regulatory filing.
After
a protracted battle, IIHL had emerged as the highest bidder with an
offer of Rs 9,650 crore to take over Reliance Capital in the second
round of auction concluded this April.
The RBI on November 29,
2021, superseded the board of Reliance Capital in view of payment
defaults and serious governance issues.
The RBI appointed
Nageswara Rao Y as the administrator in relation to the Corporate
Insolvency Resolution Process (CIRP) of the company.
Reliance
Capital is the third large non-banking financial company (NBFC) against
which RBI had initiated bankruptcy proceedings under the Insolvency and
Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan
Housing Finance Corporation (DHFL).
The central bank subsequently
filed an application for initiation of CIRP against the company at the
Mumbai bench of the National Company Law Tribunal.
