Lenders of Reliance Capital told to finalise intent 

Lenders at debt-ridden Reliance Capital (RelCap) will meet Monday to resolve concerns raised by bidders ahead of the second round of auctions scheduled for April 26, the sources said.

Potential bidders, Torrent Investment and Hinduja Group's (IIHL) IndusInd International Holdings Ltd, have expressed multiple reservations about the proposed auction and its terms and conditions.

According to the sources, both bidders have made it clear to the Committee of Creditors (CoC) that unless the issues raised by them are duly resolved to their satisfaction, they are unlikely to participate in the second round of the auction.

The CoC is likely to meet again on Monday to address bidders' concerns.

Both bidders want firmness, certainty, transparency and not to negotiate value or terms and conditions after the second round of the auction ends, they said.

Reliance Capital's two largest lenders, the Employees Provident Fund Organization (EPFO) and LIC, are against making such an up-front commitment.

Both want to keep the space open for further negotiations in case the value of the final bid in the second round of the auction falls below the liquidation value of Rs 13 billion, the sources said.

The EPFO ​​and LIC collectively own more than 30 percent of the voting rights in the CoC.

IIHL has also requested that bidders participating in the auction agree not to bid outside of the challenge mechanism process. Similarly, the bidders also want the CoC to commit to not considering any bids outside of the challenge mechanism.

Both Torrent and the IIHL have taken a strong position on the matter, the sources said, adding that they wanted the process to comply with the Insolvency and Bankruptcy Code (IBC), and that the number of bidders must be notified 24 hours before the auction scheduled for Wednesday.

Torrent has asked to declare after each round how many bidders participate in the next round and the value of their bids, the sources said.