RBI has approved the resolution plan for the financially distressed Reliance Capital, paving the way for its acquisition by IndusInd International Holdings Ltd (IIHL), a Hinduja Group entity.
According to a regulatory filing by the company, the Administrator of Reliance Capital Limited received a "No objection" letter dated November 17, 2023, from the Reserve Bank of India.
IIHL emerged as the highest bidder, offering ₹9,650 crore in the second round of the auction held in April to take over the debt-laden Reliance Capital.
The Reserve Bank of India (RBI) took charge on November 29, 2021, by superseding the board of Reliance Capital due to payment defaults and significant governance concerns. Nageswara Rao Y was appointed by the RBI as the administrator overseeing the Corporate Insolvency Resolution Process (CIRP) for the firm.
Reliance Capital is the third major non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
Subsequently, the central bank filed for the initiation of CIRP against Reliance Capital at the Mumbai bench of the National Company Law Tribunal.
Last year in February, the RBI-appointed administrator invited expressions of interest for the sale of Reliance Capital.