Lenders to Reliance Capital accuse IIHL of using delaying tactics
Lenders to debt-ridden Reliance Capital Ltd (RCAP) have alleged that Hinduja Group firm IIHL is indulging in delaying tactics, resulting in slowdown in implementation of the resolution plan. Mauritius-based IndusInd International Holdings Ltd (IIHL) emerged as a successful bidder for acquisition of Reliance Capital.
The NCLT Mumbai on February 27, 2024, approved IIHL's Rs 9,861-crore resolution plan for the debt-ridden financial firm.
According to sources, lenders claimed that IIHL's move to seek approval from the Department of Industrial Policy and Promotion (DIPP) is an afterthought.
It was not even a part of conditions set out by the NCLT while approving the resolution plan on February 27, 2024.
The message sent to IIHL for comments on the issue did not elicit response till the filing of the story.
According to sources, 90 days have passed since IIHL submitted the application with DIPP, but the approval is still pending.
DIPP approval is required as some of the shareholders of IIHL are residents of Hong Kong, a special administrative region controlled by China.
According to Press Note 3, if an entity from a nation sharing a land border with India (namely China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan), or if a citizen or permanent resident of any such country, is the beneficial owner of an investment in India, they are required to pursue investment through the government approval route.
Earlier on August 12, the National Company Law Tribunal (NCLT) directed the Reserve Bank of India
