NCLT directs RBI, DIPP to expedite approvals for implementation of RCap resolution plan
Reliance Capital's resolution plan by Hinduja Group-promoted IndusInd International Holdings. The NCLT Mumbai bench also directed IndusInd International Holdings Limited (IIHL) and the Committee of Creditors (CoC) to jointly hold a meeting to decide steps to be taken for the implementation of the same.
The National Company Law Tribunal (NCLT) — comprising Justice Virendrasingh G Bisht and Justice Prabhat Kumar — directed the Reserve Bank and DIPP to expedite 'the consideration of the approvals' to IIHL that are needed for implementing the RCaP resolution plan.
The tribunal was hearing a petition filed by the Hindujas, seeking modification of its July 23 order and an 'extension to complete the obligations' for implementing the resolution plan.
After IIHL breached the third deadline on May 27, the NCLT on July 23 extended the same to August 10 to conclude the deal. The Hinduja Group firm cited pending regulatory approvals and compliance requirements as reasons for the extension.
Hindujas' counsel Abhishek Manu Singhvi argued that «there are things that are beyond our control, which should be taken into account» like the delay in approvals by four agencies — the DIPP, Securities and Exchange Board of India (Sebi), RBI and Insurance Regulatory and Development Authority of India (IRDAI) — and the GST liability mentioned in the order is an extra liability on the company.
Singvi further informed the tribunal that IIHL has deposited the initial equity amount of Rs 250 crore in a domestic escrow account designated by
