NCLT directs IIHL to put Rs 2,750 cr in RCap account

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, ET BureauLast Updated: Feb 27, 2025, 05:43:00 AM IST

Synopsis

IIHL's counsel, Abhishek Manu Singhvi, assured the court that previous issues with transferring equity funds to the escrow account have been resolved and asked for another 10 days to complete the deal. The court granted the extension and scheduled the next hearing for March 12.

Mumbai: The National Company Law Tribunal (NCLT) on Wednesday directed IndusInd International Holdings Ltd (IIHL) to complete the acquisition of Reliance Capital by March 12 and deposit ₹2,750 crore towards equity investment it has offered into the financial services firm's account.

The order of the NCLT's Mumbai bench comes after Hinduja Group-owned IIHL missed the February 25 deadline set by the NCLT in the last hearing to complete its acquisition of Reliance Capital. IIHL's lawyer informed the tribunal that the deal was incomplete due to pending documentation but is on the verge of closure.

IIHL's counsel, Abhishek Manu Singhvi, assured the court that previous issues with transferring equity funds to the escrow account have been resolved and asked for another 10 days to complete the deal. The court granted the extension and scheduled the next hearing for March 12.

Singhvi said the deal is on the cusp of signing, previous issues related to the ₹2,750 crore transfer have been resolved, and the final signing is expected within 10 days, he said.

Corporate insolvency resolution proceedings were initiated against Reliance Capital in 2021 following the Reserve Bank of India's intervention over governance and a ₹40,000 crore debt default by the financial services firm. In 2023, its creditors approved IIHL's ₹9,650 crore resolution plan for the company. The NCLT approved it in February 2024.

Earlier, IIHL had informed Reliance Capital's committee of creditors that it was looking to complete the transaction by January 31, 2025. Later it sought an extension until February 25.

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