Hinduja Group increased its offer price of Rs 9,500 crore for multinational conglomerate Reliance Capital (RCAP).
The latest decision was reported on Friday in the creditors' committee (CoC) with an initial amount of Rs 8,800 crore to be paid.
Previously, Torrent Group emerged as the highest bidder. But with its cash offer 60 per cent lower on its total offer of Rs 8,640 crore, Hinduja Group has dominated the ahmedabad-based company.
Torrent claimed that the revised purchase offer was made after the electronic auction ended on Wednesday, making it a flagrant and arbitrary violation of the challenge process.
Reports say that COC will seek legal advice on this matter and would re-examine the bid as the electronic auction had already ended.
The revised bill will be discussed at a forthcoming meeting with the lenders, KPMG's adviser to the insolvency process and Deloitte's adviser to the RBI-appointed trustee.
Meanwhile, Torrent is likely to take legal action against the revised bill. Commenting on this matter, Torrent's letter states, in an official email to Torrent, that the administrator and CoC have determined and concluded the highest NPV amount. Therefore, it is an illegal process for the administrator and the CoC to deliver any offer that is submitted after the conclusion of the challenge process and in deviation of the submission of a financial proposal by the resolution applicant during the challenge process. .
According to the deadline issued by the National Company Law Tribunal (NCLT), Reliance Capital's resolution should close on January 31, 2023.
In between these two bidders, the others who dropped out of the race were Oaktree Capital Management and Cosmea Piramal.
Reports suggest that this is the first time that an electronic auction of this scale has been carried out for the resolution of an NBFC under IBC.
