Reliance Capital resolution plan: NCLAT issues notice to bidder Torrent investments

NCLAT issues notice to bidder Torrent Investments on lender's plea; next hearing on 9 February.

Earlier, Reliance Capital lenders have approached the National Company Law Appellate Tribunal (NCLAT) to seek a second round of financial bids for the debt-ridden firm, presently going through the insolvency resolution process.

Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors of Reliance Capital has filed an appeal before the appellate tribunal.

On February 2, the Mumbai bench of the National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital and said the challenge mechanism for financial bids has already concluded.

It upheld the plea by Torrent Investments' plea challenging bankers' decision to go for the second round of auctions in pursuit of higher value for the bankrupt company.

NCLT in its order said the bench allows Torrent Investment's application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of the applicant at ₹8,640 crore being the highest.

Torrent Investments had filed a plea on January 9, requesting the tribunal to quash the lenders' plans to hold a fresh auction for the takeover of Reliance Capital.

Torrent Investment was the highest bidder offering ₹8,640 crore in the last round of the 'challenge mechanism'.