Reliance Capital's Financial Saga: IIHL's Extensions and Compliance Struggles

Lenders of debt-ridden Reliance Capital (RCAP) have warned IndusInd International Holdings Ltd (IIHL) of remedial action due to delays in payment. While IIHL claims compliance, it missed deadlines for depositing initial equity amounts. The National Company Law Tribunal (NCLT) granted an extension till August 10 amid ongoing compliance issues.

Lenders of debt-ridden Reliance Capital (RCAP) have issued warnings to IndusInd International Holdings Ltd (IIHL) for delays in payment of front money. The Hinduja Group-owned IIHL, however, denied any wrongdoing, stating it has deposited Rs 2,750 crore as required by the NCLT order.

According to a statement by the Hinduja Group firm, IIHL has deposited Rs 2,750 crore towards its equity contribution. An affidavit and bank certificate were submitted to the NCLT on July 31, 2024, but actions required by the Committee of Creditors (CoC) and the administrator remain incomplete.

The NCLT has extended IIHL's deadline till August 10, given ongoing compliance and regulatory approval issues. The NCLT originally approved IIHL's Rs 9,650-crore resolution plan for Reliance Capital in February 2024. The firm missed multiple deadlines, prompting a warning from CoC. Reliance Capital, with a debt of Rs 40,000 crore, has seen multiple bidding and resolution attempts since 2021.

(With inputs from agencies.)