Lenders Warn Hinduja Group Arm Over Reliance Capital Deal Delays

Lenders of Reliance Capital have warned Hinduja Group's IndusInd International Holdings for not meeting the National Company Law Tribunal (NCLT) conditions, including depositing Rs 250 crore in an escrow account. The successful bidder has been given an extension till August 10 to comply with the order, else face remedial action.

Lenders of debt-ridden Reliance Capital (RCAP) have issued a stern warning to Hinduja Group's IndusInd International Holdings (IIHL) for failing to adhere to National Company Law Tribunal (NCLT) mandates, such as the placement of Rs 250 crore in an escrow account.

IIHL, which has secured the bid for Reliance Capital, has been granted an extension until August 10, with several conditions stipulated by NCLT, Mumbai. The NCLT's July 23 order required the bidder to fulfill multiple conditions by July 31, 2024, including a Rs 250 crore domestic escrow and Rs 2,500 crore offshore escrow deposit for the Committee of Creditors (CoC).

On August 1, Vistra ITCL, acting as trustee for the CoC, alerted IIHL of its default on the NCLT order. Despite the deadline lapsing, the necessary funds were not deposited into CoC's designated accounts. This default places lenders in a position to exercise their legal rights and remedies per the submitted resolution plan. Additionally, IIHL missed previous deadlines and cited regulatory approvals as reasons for delays.

(With inputs from agencies.)