Sticky GST Liability Poses Challenge in Reliance Capital's Resolution Plan

The Hinduja Group's IndusInd International Holdings has raised concerns over a GST liability of Rs 850 crore in the implementation of Reliance Capital's resolution plan. Despite receiving seven approvals, including those from the RBI and SEBI, the GST issue remains unresolved. The matter will be further heard on September 19.

The GST liability of Rs 850 crore has emerged as a significant hurdle in executing Reliance Capital's resolution plan, says IndusInd International Holdings, owned by the Hinduja Group, before the National Company Law Tribunal (NCLT).

Senior counsel Abhishek Manu Singhvi, representing IndusInd, informed the tribunal that while they have received seven crucial approvals, including from the RBI and SEBI, the GST liability is still a pressing issue. A joint meeting with the Committee of Creditors (CoC) to resolve the matter has not yielded a solution.

The tribunal, led by Justices Virendrasingh G Bisht and Prabhat Kumar, has scheduled further hearings on September 19. Singhvi emphasized the company's readiness to pay Rs 9,861 crore but stressed that the GST liability needs resolution as per the NCLT's February 27 order. The CoC counsel, Prateek Seksaria, urged for a timely resolution.

(With inputs from agencies.)