In a big setback to Hinduja Group-promoted IndusInd International Holdings (IIHL), NCLT directed it to deposit Rs 2,750 crore in a special escrow account within 48 hours as part of Reliance Capital's resolution plan. The tribunal also clarified that the interest on the money in the CoC/Vistra escrow account will belong to the Committee of Creditors.
IIHL was also asked to disclose the term sheet for Rs 7,300 crore fundraising through debt to the Monitoring Committee. The Mumbai bench of the tribunal, comprising Justice Virendra singh G Bisht and Justice Prabhat Kumar, was hearing a petition filed by the Hindujas seeking modification of the tribunal's July 23 order and an 'extension to complete the obligations' for implementing the resolution plan.
While partly allowing an appeal by IIHL, the tribunal directed the company to implement the resolution plan by August 10 and to deposit Rs 2,500 crore in the offshore escrow account of Vistra with Yes Bank in the Gift City and Rs 250 crore in the Vistra's Yes Bank escrow account in Mumbai.
Hindujas' counsel Abhishek Manu Singhvi urged that if the NCLT does not consider the modification of its order, the administrator, the CoC and IIHL will face inexplicable challenges in implementing the resolution plan for Reliance Capital.
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Singhvi submitted a 'compliance affidavit' stating that it has deposited the entire equity component of Rs 2,750 crores. However, this amount has been deposited in accounts of Ashok Hinduja, Harsha Hinduja, and Shom Hinduja. The administrator argued that IIHL was seeking minor changes to the order and trying to shift the responsibility for implementing the plan onto them, which is not in accordance with the resolution plan. IIHL made the highest cash offer of Rs 9,661-crore in the auctions and secured as much as 99 per cent of the lender's votes.
(With inputs from PTI)
