Lenders at Reliance Capital (RCap), which is plagued with debt, set April 26 as the new date for the second auction. According to the previous schedule, it would take place on April 11. The decision for the new April 26 date was made at the Creditors' Committee meeting held on Tuesday, the sources said. According to the sources, the bidders who have confirmed their participation in the second round of the auction are Hinduja Group's IndusInd International Holdings Ltd (IIHL), Torrent Investment and Singapore-based Oaktree. Bidders' primary concern is compliance of the resolution plan with the Insolvency and Bankruptcy Code (IBC) and the Resolution Plan Request (RFRP) guidelines. In the first round of the auction, the Hinduja Group firm submitted the bid after the auction date. This post-auction bid is being challenged by Torrent Investment in the Supreme Court for being the highest bidder. The Creditors' Committee (CoC) also has to incorporate the Supreme Court's order into the Challenge Mechanism, the sources added. Meanwhile, the Administrator also applied to the National Company Law Tribunal (NCLT) for an extension of the deadline to complete the resolution process until May 30. The time frame to complete Reliance Capital's resolution process has been extended several times in the past. The Reserve Bank of India (RBI) on November 29, 2021 replaced the board of Reliance Capital in view of payment defaults and serious governance issues. The RBI appointed Nageswara Rao Y as administrator in connection with the company's Corporate Insolvency Resolution Process (CIRP). Reliance Capital is the third major non-bank financial corporation (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The central bank subsequently filed a CIRP initiation application against the company in the Mumbai court of the National Company Law Tribunal. In February last year, the RBI-appointed trustee invited expressions of interest for the sale of Reliance Capital.
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