Reliance Cap’s CoC withdraws plea against IIHL claiming interest

The Committee of Creditors (CoC) of Reliance Capital (RCap) has withdrawn a petition filed last year claiming ₹1,060 crore as interest payment from IndusInd International Holdings (IIHL) for delay in implementing its resolution plan in a time-bound manner.

IIHL, the successful resolution applicant, had earlier claimed that the delay in implementation of the resolution plan was due to procedural issues.

Lenders of RCap sought interest on payment for the extended period for upfront payment by the Hinduja group firm and forfeiture of ₹2,750 crore in case of default. They also sought modificiation of the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) which extended the period for implementation of the resolution plan from last July to August.

On Monday, the CoC withdrew its petition from NCLAT on delayed payment.

Earlier this month, IIHL completed the acquisition of Reliance Capital and ended the three-year-long resolution process of the debt-ridden company.

In April 2023, IIHL had emerged as the successful resolution applicant for Reliance Capital of the Anil Ambani-led Reliance Group by winning the bid under the IBC process with an offer of ₹9,650 crore.

IIHL reconstituted RCap board by including RBI approved members Moses Harding John and Arun Tiwari.

With this acquisition, IIHL gains control of about 40 entities, including key subsidiaries like Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities, and Reliance Asset Reconstruction. The company aims to establish bancassurance ties and implement digitization across these subsidiaries.