NCLT reserves order on Reliance Capital Resolution Plan approval

Mumbai, Jan 11: The NCLT Mumbai has reserved its order on the approval of IIHL's resolution plan for the Reliance Capital. While reserving the order, the NCLT has said that the order will be delivered within a month. The Rs 9,861 crore resolution plan was submitted for NCLT approval by the Reliance Capital administrator in July last year.

Before that, the Hinduja Group company, IIHL's resolution plan was approved by the committee of creditors (COC) with an overwhelming 99.6 per cent voting in favour of the plan in June 2023. IIHL's resolution plan, valued at Rs 9,861 crore, encompasses three components.

Firstly, Rs 9,650 crore will be allocated to financial creditors for settling outstanding loans, operational creditors, and other claims. Additionally, IIHL will reimburse Rs 200 crore to the COC for the capital infusion into Reliance General Insurance Company (RGIC), and the remaining Rs 11 crore will be paid for the lack of due diligence by the previous directors of the corporate debtors.

IIHL was the only bidder in the second round of auction of Reliance Capital held in April 2023. The company made an all cash bid of Rs 9,861 crore for the Reliance Capital assets, including its general & life insurance business.