RCap Admin Seeks Extension Of 10 Days Extension From RBI To Transfer Assets
The assets are to be transferred to Hinduja Group
The administrator of debt-ridden Reliance Capital (RCAP) has requested a 10-day extension from the Reserve Bank to transfer its businesses to a successful bidder, a Hinduja Group company called Aasia Enterprises.
The deadline for the transfer of Reliance Capital's assets to Aasia Enterprises ended on Friday.
The RBI had granted approval on 17 November 2023, which was valid for only 6 months. The RCAP administrator has asked for an extension of 10 days until 27 May 2024 from the RBI.
On 27 May, the Hinduja Group company is required to implement the resolution plan as per the NCLT order.
The National Company Law Tribunal (NCLT) Mumbai approved the resolution plan on February 27 and directed IndusInd International Holdings Ltd to implement it within 90 days, ending on 27 May.
The tribunal approved the Rs 9,650-crore resolution plan for Reliance Capital, which was submitted by the Hinduja Group firm IndusInd International Holdings.
In November 2021, the RBI superseded the board of Reliance Capital due to governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.
The central bank appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.
Reliance Capital had a debt of over Rs 40,000 crore, and initially, four applicants submitted resolution plans. However, all four plans were rejected by the committee of creditors due to lower bid values, leading to a challenge mechanism being initiated in which IIHL and Torrent Investments participated.
