Lenders of debt-ridden Reliance Capital Limited (RCAP) have alleged that Hinduja Group company IIHL is adopting a delaying strategy, due to which there is a delay in implementing the resolution plan. On the other hand, the Hinduja Group company denied the allegations and said that it is following due process. Mauritius-based IndusInd International Holdings Limited (IIHL) emerged as the successful bidder for the acquisition of Reliance Capital.
NCLT had approved the resolution plan of Rs 9,861 crore
The Mumbai bench of NCLT on February 27, 2024 approved IIHL’s Rs 9,861 crore resolution plan for the debt-ridden financial company. According to sources, the lenders claimed that IIHL has taken the step of seeking approval from the Department of Industrial Policy and Promotion (DIPP) later. He said that this was also not part of the conditions set by the NCLT while approving the resolution plan on February 27, 2024. According to sources, 90 days have passed since IIHL submitted its application to the DIPP, but the approval is still pending.
What did IIHL sources say?
IIHL sources said, “All the allegations are completely false, baseless and are an attempt to defame and disrupt the resolution process.” Company sources said, “All the allegations are false and false. There is no reason for IIHL to delay the implementation of the plan, especially when IIHL has already deposited Rs 2,750 crore with the CoC.” He said that contrary to the allegations, it is in the interest of IIHL to complete the resolution plan as soon as possible and take possession of the company, so that the value is decreasing on a daily basis. DIPP approval is necessary because some of the shareholders of IIHL are residents of Hong Kong, a special administrative region controlled by China. According to Press Note 3, if any entity, citizen or permanent resident of any country sharing land border with India (China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan) invests in India, he/she will have to take approval from the government for the same.
