NCLT approves Hinduja's acquisition of bankrupt Reliance Capital

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₹9,861 crore to acquire Reliance Capital, which was subsequently approved by the administrator. The bid also received overwhelming support from creditors, with a 99% majority voting in favour. However, Hinduja was embroiled in a legal battle with Ahmedabad-based Torrent Investments regarding the submission of bids under the corporate insolvency resolution process (CIRP).

Torrent Investments had led the bidding during Reliance Capital's insolvency auction in December 2022 with an offer of ₹8,640 crore. However, IIHL had proposed a higher bid of over ₹9,000 crore after the auction, prompting the lenders to initiate a second auction, or an extended challenge mechanism, to ensure the best recovery value for the insolvent firm. Aggrieved Torrent had moved the NCLT in January 2023, which had sided with Torrent, ruling that the second auction violated CIRP norms.

This decision was contested by the lenders at the National Company Law Appellate Tribunal in March 2023, which permitted the second auction to proceed, aiming to maximize the value recovered from Reliance Capital. Following which in August 2023, Torrent Investment appealed to the Supreme Court in a bid to prevent the NCLT from considering IIHL's settlement plan. However, the apex court refused to interrupt the NCLT proceedings.