Holding new e-auction for Reliance Capital illegal, says Torrent Group

MUMBAI:  Torrent Group on Tuesday said that conducting a new round of challenge mechanism or e-auction in the Reliance Capital (RCap) insolvency case is illegal and should not be allowed. 

Speaking during the hearing at the National Company Law Tribunal (NCLT), Mukul Rohatgi, representing Torrent Investments, said that the law only allows a single round of auction and if the lenders are allowed to hold a new challenge mechanism, then the process would never end.

He said the Committee of Creditors (CoC) is trying to prove that the bids of both Torrent Investments and Hinduja Group are sub-optimal, so that it can start a fresh auction. 

He said that their bid of Rs 8,640 crore was above the threshold and the matter ended there.

As per the unanimous decision of lenders, the second round of challenge mechanism will be conducted on 
January 19. Darius Khambata, representing Torrent, said that CoC minutes show that the challenge mechanism was concluded and conducted fairly and transparently, with Torrent as the highest bidder, and as per the relevant law the second auction is illegal. The hearing of Reliance Capital case will continue on Wednesday.