NCLT Extends Deadline for Reliance Capital Resolution Plan

The National Company Law Tribunal (NCLT) has extended the deadline until August 10 for Hinduja Group-owned IndusInd International Holdings Ltd (IIHL) to complete formalities for the Reliance Capital resolution plan. IIHL has been directed to deposit the equity amount by August 31. A lawsuit by Torrent Group is pending in the Supreme Court.

The National Company Law Tribunal (NCLT) extended the deadline until August 10 for IndusInd International Holdings Ltd (IIHL), a Hinduja Group company, to finalize the resolution plan for bankrupt Reliance Capital on Tuesday.

Justices Virendrasingh G Bist and Prabhat Kumar directed IIHL to submit the equity amount into the escrow account by August 31. The tribunal also ruled that any cash during the extension period should be funneled to the Committee of Creditors (CoC).

Previously, on May 26, NCLT approved IIHL's application for an extension past the initial May 27 deadline, citing pending regulatory approvals and compliance requirements. Following this, on June 29, 2023, lenders accepted the revised Rs 9,661-crore bid from IIHL, which secured 99% of lender votes. This included a Rs 500-crore cash balance with Reliance Capital, amounting to an overall recovery of Rs 10,200 crore. Meanwhile, a lawsuit by Torrent Group challenging the second e-auction remains unresolved in the Supreme Court.

(With inputs from agencies.)