Reliance Capital Resolution Process Completion Deadline Extended By 90 Days To July 16

The timeframe for Reliance Capital's resolution process has been extended by 90 days to July 16 by NCLT Mumbai. The previous due date, April 14, has passed. According to reports, the lenders' decision to organise a second round of auction on April 26 in order to optimise the proceeds from the sale of Reliance Capital assets prompted the extending of the deadline by 90 days.

IndusInd International Holdings Ltd (IIHL), a company owned by the Hinduja Group, Torrent Investment, and the Singapore-based Oaktree are the bidders that have declared their participation in the second round of the auction. Originally set for April 11, the second round of the auction was moved to April 26 because the lenders needed more time to address the issues presented by the bidders.

According to reports, the bidders have requested that the Reliance Capital lenders guarantee that the resolution plans are compliant with both the Request for Resolution Plan (RFRP) and the Insolvency and Bankruptcy Code (IBC).

According to insiders, bidders also seek assurances from the lenders that there won't be any more discussions after the second round of the auction is over and that the resolution process would be concluded at that point.

The Hinduja Group company entered the bid after the auction date in the first round. Torrent Investment, the top bidder, is challenging this post-auction bidding at the Supreme Court. The sources further stated that the Supreme Court order must be included in the Challenge Mechanism by the Committee of Creditors (CoC). The administrator has also requested to the NCLT that the timeframe for finishing the resolution process be extended to May 30.

Reliance Capital's resolution procedure date has previously been postponed numerous times. On November 29, 2021, the Reserve Bank of India (RBI) dismissed the Reliance Capital board because of serious governance difficulties and payment irregularities. Nageswara Rao Y has been chosen by the RBI to serve as the company's Corporate Insolvency Resolution Process (CIRP) administrator. The third significant non-banking financial institution (NBFC) against which the central bank has filed an IBC insolvency action is Reliance Capital.