RCAP Ownership Transfer to IIHL: NCLT Sets March 12 Deadline

New Delhi, Feb 26 (PTI) The National Company Law Tribunal (NCLT) has directed lenders and monitoring committee to complete all procedural issues by March 12 for the ownership transfer of debt-ridden Reliance Capital (RCAP) to IndusInd International Holdings Limited (IIHL).

The Mumbai-bench of NCLT on Wednesday heard the matter related to the resolution process of RCAP and asked all parties to complete all pending procedural aspects before the next hearing on March 12.

An IIHL spokesperson said that IIHL voluntarily offered to release Rs 2,750 crore in equity capital into Reliance Capital's account to demonstrate its commitment to completing the transaction. The tribunal accepted the proposal.

The Court directed all stakeholders, including the Committee of Creditors, Monitoring Committee, IIHL, and the Administrator, to complete all outstanding procedural formalities by March 12, the spokesperson added.

Since the last hearing of NCLT on February 10, seven meetings of the Monitoring Committee were held on various steps of implementation of the approved resolution plan.

Besides, the intermediate escrow agreement has been finalized and the escrow accounts have been opened and are ready to accept disbursement.

IIHL emerged as the successful resolution applicant with the highest bid of Rs 9,650 crore in April 2023 for acquiring the troubled financial services firm under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC).

With the acquisition, IIHL aims to ramp up banking, financial services, and insurance (BFSI) business more than three-fold to USD 50 billion in the next five years as against the current valuation of USD 15 billion (as of September 30, 2024).

IIHL had already secured approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (Irdai), and stock and commodity exchanges earlier this year.

In November 2021, the RBI superseded the Reliance Capital board on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.