IIHL’s application sought adjustments to the deposit conditions, citing difficulties in meeting the original deadlines.
The application also highlighted the need for approvals from the Reserve Bank of India (RBI) regarding control changes, securities pledging, and foreign equity, among other compliance issues.
In its July 23 order, the NCLT had granted an extension until August 10 for IIHL to conclude the deal, with the caveat that any cash accumulated during this period would go to the CoC. This extension followed IIHL’s delay in meeting the May 27 deadline, which marked the third such instance.
The NCLT had approved IIHL’s ₹9,650-crore resolution plan for Reliance Capital on February 27, 2024. Reliance Capital, once part of the Anil Dhirubhai Ambani Group, had been placed under administration by the Reserve Bank in November 2021 due to governance issues and payment defaults, with debts exceeding ₹40,000 crore.
The CoC had initially rejected all four bids for the company, leading to a challenge mechanism in which IIHL and Torrent Investments participated.
The tribunal will now deliberate on the matter further on August 12.
Source: Barandbench
