Reliance Capital's Resolution Plan Hits Snag with IIHL's Payment Delays

Lenders of Reliance Capital have warned IIHL of potential remedial action due to delays in payment. Despite claims from the Hinduja Group that Rs 2,750 crore has been deposited, certain conditions remain unmet. IIHL now has an extended deadline until August 10 to fulfill compliance obligations under the existing NCLT order.

Lenders of debt-stricken Reliance Capital have issued a notice to IndusInd International Holdings Ltd (IIHL) over delays in front money payments. The Hinduja Group arm countered, stating it has already deposited Rs 2,750 crore as mandated by the NCLT order.

IIHL affirmed that it has made the required capital infusion and filed an affidavit confirming the same. Despite these assertions, certain compliance conditions remain unmet as laid out in the resolution plan.

The National Company Law Tribunal (NCLT) has granted IIHL an extended deadline until August 10 to meet these conditions, as previous deadlines were missed due to regulatory approvals. The central bank had earlier superseded the board of Reliance Capital in November 2021 over governance issues and payment defaults.