Mint Explainer: Why has RCap's insolvency resolution been delayed?

livemint.com:

Mint takes a closer look at the reasons for the delay in this case. In November 2021, the RBI superseded the board of Reliance Capital and appointed Nageswara Rao Y as the administrator. A month later the company was admitted into the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).

Also read | IBC tale of delay: Speed up insolvency resolution for this reform to shine Initially, a slew of resolution applicants evinced interest in the bankrupt firm, only to back out later. Then in 2023, Torrent Investments and the Hinduja Group kicked off a battle to take over Reliance Capital, delaying the resolution. Eventually, a ₹9,650-crore plan by Hinduja Group’s IndusInd International Holdings Ltd (IIHL) to turn the company around was endorsed by lenders and the tribunal in June 2023 and February 2024, respectively.

Concerned about delays in implementing the resolution plan, lenders have been pushing IIHL to act. According to the NCLT order in February 2024, the plan was to be implemented in 90 days (by 27 May). But IIHL recently filed an application before the NCLT seeking another 90-day extension to implement the plan, adding to the lenders’ troubles.

Also read: Lenders refuse to extend RCap resolution deadline as Hindujas delay repayment On 18 May, Mint reported that while IIHL had informed lenders about the delay in receiving regulatory clearances, the committee of creditors (CoC) and the administrator opposed its request. Then on 23 May Mint reported, citing two people aware of the matter, that the NCLT had granted IIHL more time to secure the remaining regulatory approvals. The Hindujas received the RBI’s approval in November 2023.