Lenders vs. Hinduja Group: The Battle Over Reliance Capital Resolution

Lenders of Reliance Capital Ltd (RCAP) accuse Hinduja Group's IIHL of delay tactics in the resolution process, which IIHL denies, asserting adherence to due process. IIHL had won the bid with a Rs 9,861-crore plan approved by NCLT. Approval from DIPP is awaited, complicating the resolution timeline.

Accusations are flying in the ongoing struggle to resolve the debt crisis of Reliance Capital Ltd (RCAP). Lenders have alleged that IndusInd International Holdings Ltd (IIHL) is employing delaying tactics that are slowing down the implementation of the resolution plan.

The Hinduja Group company has firmly denied these allegations, stating that it is following due process. IndusInd International Holdings Ltd emerged as the successful bidder for acquiring RCAP, submitting a Rs 9,861-crore resolution plan that was approved by the National Company Law Tribunal (NCLT) in February 2024.

Complicating the matter further is the pending approval from the Department of Industrial Policy and Promotion (DIPP), which lenders claim is IIHL's way of dragging its feet. IIHL sources counter that the DIPP approval, delayed for over 90 days, is part of due process involving stakeholders from nations sharing a land border with India.

(With inputs from agencies.)