Reliance Capital Resolution Hits Snag with IIHL Non-Compliance: NCLT Affidavit Details

Reliance Capital's Administrator has accused IndusInd International Holdings Ltd (IIHL) of non-compliance, claiming the firm failed to meet tribunal-set conditions for depositing funds in designated escrow accounts. This accusation is detailed in an affidavit filed with NCLT. The matter will be heard next week amid ongoing disputes over fund transfers and compliance with the July 23 order.

The Administrator of debt-ridden Reliance Capital has lodged an affidavit with the NCLT, accusing the Hinduja Group's IndusInd International Holdings Ltd (IIHL) of failing to follow tribunal mandates. According to the administrator, IIHL didn't deposit Rs 2,750 crore in the required escrow accounts as stipulated by a July 23 ruling.

Instead, the funds were placed in IIHL's and its promoters' personal accounts, the affidavit alleges. IIHL, in its defense, stated that the funds would be transferred once the escrow account terms were finalized. The administrator countered by asserting that these accounts were already opened and details shared with IIHL in advance.

The ongoing dispute centers on IIHL's non-compliance with the July 23 order, including the failure to provide term sheets for additional debt raising. The NCLT hearing on this issue is scheduled for next week, adding another chapter to Reliance Capital's complex resolution saga.

(With inputs from agencies.)