Mumbai (Uttam Hindu News): The Reserve Bank of India on Friday approved the resolution plan for debt-ridden Reliance Capital. The move ultimately paves the way for Hinduja Group unit – IndusInd International Holdings Limited (IIHL) to acquire the company.
On behalf of the company, it has been said that you are informed that the Administrator of Reliance Capital Limited has received “no objection” from the Reserve Bank of India through letter dated November 17, 2023. After a long battle, IIHL had emerged as the highest bidder with an offer of Rs 9,650 crore to acquire Reliance Capital in the second round of auction held this April.
RBI on November 29, 2021 dissolved the board of Reliance Capital in view of payment defaults and serious governance issues. RBI appointed Nageswara Rao Y as administrator in connection with the corporate insolvency resolution process (CIRP) of the company.
Reliance Capital is the third large non-banking financial company (NBFC) against which RBI has initiated insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The central bank later filed an application in the Mumbai bench of the National Company Law Tribunal to initiate CIRP against the company.