Administrator files Hinduja’s resolution plan for Reliance Capital at NCLT

MUMBAI: The administrator of Reliance Capital has filed the resolution plan given by the Hinduja group entity IndusInd International Holding, approved by lenders, with the National Company Law Tribunal, said people aware of the transaction.

Nageswara Rao Y, the Reserve Bank of India-appointed administrator, submitted a plan by IndusInd International Holding (IIHL), which offered Rs 9,660 crore.

On June 29, ET reported that 99.6% of lenders voted for IIHL’s resolution plan. The administrator has admitted Rs 24,755 crore of claims from lenders. The recovery on the claim amount will be around 40%.

Besides NCLT, Hinduja will require approval from the Reserve Bank of India to acquire a financial services company.

The deal would also require Supreme Court’s approval since Torrent Investments, one of the initial bidders, had appealed over the extension of the first round of auction beyond the original deadline.

In the first auction on December 21, Torrent Investments made the highest offer of Rs 8,640 crore, while the Hinduja Group entity offered Rs 8,110 crore. However, within 24 hours, the Hinduja entity gave a revised, improved offer of Rs 9,000 crore, a development contested by Torrent. The following auction was held on April 26, wherein Hinduja offered Rs 9,640 crore while Torrent did not participate.