NCLT approves Hinduja Group’s revival plan for Anil Ambani-promoted Reliance Capital

The bankruptcy court in Mumbai allowed an application on Tuesday filed by the administrator of Reliance Capital to approve the Anil Ambani-promoted company’s acquisition by IndusInd International Holdings Ltd through the insolvency resolution process.

The division bench of Justice Virendra Singh Bisht and a technical member Prabhat Kumar approved the plan in an oral order. The detailed order is awaited.

Last year on June 29, the e-voting on resolution for approval of the resolution plan concluded, Reliance Capital’s Administrator Nageswara Rao Y said in a stock exchange announcement. 

However, he didn't disclose the financial details in the stock exchange announcement.

The order comes in the backdrop of the development wherein the veteran lawyer Shardul Shroff had approached the Supreme Court on behalf of Torrent Investments in October last year to speed up the hearing on the company's application to stay the second challenge mechanism in a corporate insolvency resolution process (CIRP) for the Anil Ambani-promoted Reliance Capital.

At the heart of the dispute is a bid from the Hinduja Group entity given 24 hours after the auction deadline (December 21, 2022), trumping the offer made within the stipulated time by Torrent Investments. 

Lenders decided to hold a second round of auction and that matter is pending before the Supreme Court.

While Torrent was the highest bidder offering Rs 8,640 crore in the first round, Hinduja offered Rs 9,660 crore in the second round. 

Torrent Investments, also in the fray for the distressed finance company, refrained from submitting a final plan to the lenders concerned.