NCLT directs Reliance Capital creditors to not accept Hinduja offer till next hearing

The case involving the takeover of debt-ridden Reliance Capital by bidders Torrent Investment and Hinduja Global is likely to be heard by the National Company Law Tribunal (NCLT) next week.

The National Company Law Tribunal (NCLT) has ordered Reliance Capital's Creditors' Committee (CoC) not to consider Hinduja Global's revised offer until the next hearing, granting Torrent Investments Private Limited interim relief in the tender case .

The NCLT is likely to hear the case again next week.

Last month, Torrent Group and Hinduja Global had participated in the electronic auctions, with the former making the hhighest offer of Rs 8,640 crore on December 21 for acquiring the NBFC firm created by the Anil Ambani Group.

Two days later, Hinduja Global presented lenders with a revised offer worth Rs 9,000 crore in net present value (NPV) terms for debt-ridden Reliance Capital, beating out the offer made by Torrent Investment in the auction held as part of its resolution process. Hinduja submitted its bid after the electronic auction process was completed.

However, Torrent, which had become the leading bidder to acquire RCap before the auction deadline, objected to the RCap Administrator considering Grupo Hinduja's revised offer and stated that considering the revised offer would be a violation of the process. He had pleaded with NCLT to order the RCap administrator not to accept the revised offer.

Monday, Reliance Capital's CoC said a meeting had been scheduled to discuss Torrent and Hinduja's bids.

The National Company Law Tribunal (NCLT) set a deadline of March 31, 2023 to complete RCL's resolution, which is already over a year behind schedule.

Reliance Capital is the third major NBFC against which the central bank has initiated bankruptcy proceedings under IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation. The RBI subsequently filed a CIRP commencement application against the company at NCLT's Mumbai bank.

In February last year, the RBI had appointed an expression of interest guest trustee for the sale of RCL.

NCLT directs Reliance Capital creditors to not accept Hinduja offer till next hearing

The case involving the takeover of debt-ridden Reliance Capital by bidders Torrent Investment and Hinduja Global is likely to be heard by the National Company Law Tribunal (NCLT) next week.

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