RCap Administrator submits name of IIHL as successful bidder for NCLT approval

Debt-ridden Reliance Capital on Wednesday said the RBI-appointed administrator has submitted the name of IndusInd International Holdings Limited (IIHL) as a successful bidder to National Company Law Tribunal (NCLT) for consideration. It is to be noted that the Committee of Creditors (CoC) has voted in the favour of resolution plan submitted by Hinduja Group company IIHL.

IIHL has made the highest cash offer of Rs 9,661 crore in the second round of the auction held on April 26.

The administrator has filed an application under Section 30 (6) of the Insolvency and Bankruptcy Code, 2016, for submission of the resolution plan of IIHL as approved by the Committee of Creditors of Reliance Capital Limited, with the Adjudicating Authority National Company Law Tribunal (NCLT), Mumbai Bench, RCap said in a regulatory filing.

The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator for the Corporate Insolvency Resolution Process (CIRP) of the firm. Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

The central bank subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the NCLT. In February last year, the RBI-appointed administrator invited expressions of interest for the sale of Reliance Capital.