Anil Ambani’s Rs 96500000000 Reliance deal still waiting for green signal? IRDAI nod awaited as deadline nears

Anil Ambani, the younger brother of India’s richest man Mukesh Ambani, has been in the news for the past couple of months as his debt-ridden firm Reliance Capital secured a massive Rs 9650 crore a buyout deal. To recall, Anil Ambani’s Reliance Capital (RCAP) secured a buyout offer of Rs 9650 crore from Hinduja Group’s IndusInd International Holdings Limited (IIHL) a few months ago. Hinduja Group’s firm has already received clearance from SEBI, CCI (Competition Commission of India) and RBI. It now awaits a green signal from IRDAI for Reliance Capital acquisition. 

IRDAI has raised several questions and concerns over the proposed corporate structure to transfer RCAP's insurance businesses to IIHL, and the company has not yet addressed those concerns.

It is noteworthy that the National Company Law Tribunal (NCLT), Mumbai, while approving the resolution plan on February 27, had directed IIHL to implement the resolution plan within 90 days i.e. by May 27.

Insurance Regulatory and Development Authority of India (IRDAI) is expected to approve IndusInd International Holdings' acquisition of Reliance Capital's three insurance companies. According to a report by the Economic Times, IRDAI believes that Reliance Capital is a big non-banking financial company that is going through bankruptcy proceedings that needs to be closed within the time frame.