Torrent Investments has sought refund of the earnest money deposit (EMD) of Rs 75 crore, deposited as part of the dispute resolution process. Trusted capital. However, the same could be delayed due to ongoing court proceedings, sources said. Line of business.
The EMDs, presented by Torrent in the form of bank guarantees, must be released within a period of 14 days from NCLT approve a resolution process. The Mumbai court approved IndusInd International Holding's (IIHL) Rs 9,650-crore resolution plan for RCap on February 27.
โRCap has returned the EMDs submitted by other bidders. But since the Torrent matter is subjudice, RCap has sought legal advice based on which the CoC will take a decision on the refund,โ a source said, adding that RCap's in-house legal team is also working on the matter.
the plea
Torrent's plea challenging the validity and mechanism of the second round of auctions or the 'expanded challenge mechanism' for the sale of RCap is pending before the Supreme Court. The high court is scheduled to hear the matter on April 2.
Some market participants believe that the return of the EMDs will make Torrent's appeal โunfruitfulโ as they will no longer have any standing in the matter. However, others believe that the two matters are separate and that the SC hearing will continue regardless of the refund.
Meanwhile, IIHL, a Hinduja Group company, is awaiting further regulatory approvals to go ahead with its acquisition of Reliance Capital. The company has said that the acquisition will not be completed in FY24 as stated earlier, but is expected to conclude in May 2024, within the timeline stipulated by NCLT.
Pending approvals include those from RBI, SEBI, IRDAI and among others. While applications have already been submitted to the RBI and SEBI and approval is expected soon, IRDAI approval could take some time. Line of business had previously reported.
