Indian businessman Anil Ambani, brother of Mukesh Ambani, is set to lose his debt-ridden Reliance Capital. Hinduja Group firm, Indusind International Holdings (IIHL), has started making the payment in a Rs 9,650 crore resolution plan for Reliance Capital. The company has transferred Rs 2750 crore to a designated escrow amount in line with the National Company Law Tribunal (NCLT) directions, ET reported. IIHL placed the highest bid for the acquisition of Reliance Capital.
Meanwhile, NCLT has directed the RBI and the Department of Industrial Policy and Promotion (DIPP) to expedite the approval process to implement Reliance Capital's resolution plan by IIHL. The NCLT Mumbai bench also directed IIHL and the Committee of Creditors (CoC) to jointly hold a meeting to decide steps to be taken for the implementation of the same.
The tribunal was hearing a petition filed by the Hindujas, seeking modification of its July 23 order and an 'extension to complete the obligations' for implementing the resolution plan. After IIHL breached the third deadline on May 27, the NCLT on July 23 extended the same to August 10 to conclude the deal. The Hinduja Group firm cited pending regulatory approvals and compliance requirements as reasons for the extension.
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The tribunal has given August 28 as the next date for a hearing on this matter. The NCLT, on February 27, 2024, approved IIHL's Rs 9,650 crore resolution plan for Reliance Capital. In November 2021, RBI superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. Reliance Capital had a debt of over Rs 40,000 crore.
(With inputs from PTI)
