NCLT Sets March 12 Deadline for Reliance Capital Ownership Transfer to IIHL

New Delhi, Feb 26: The National Company Law Tribunal (NCLT) has directed lenders and the monitoring committee to finalize all procedural requirements by March 12 for the transfer of ownership of debt-laden Reliance Capital (RCAP) to IndusInd International Holdings Limited (IIHL).

During a hearing on Wednesday, the Mumbai bench of NCLT reviewed the ongoing resolution process and instructed all involved parties to complete outstanding formalities before the next hearing.

To reinforce its commitment to the acquisition, IIHL voluntarily proposed injecting ₹2,750 crore in equity capital into Reliance Capital’s account. The tribunal accepted this proposal, signaling progress toward finalizing the deal.

A spokesperson for IIHL confirmed that the court has mandated all stakeholders—including the Committee of Creditors, Monitoring Committee, IIHL, and the Administrator—to resolve all remaining procedural matters by March 12.

Since the last NCLT hearing on February 10, seven meetings of the Monitoring Committee have taken place to discuss and implement key aspects of the approved resolution plan. Additionally, an intermediate escrow agreement has been finalized, with escrow accounts now open and ready for disbursement.

IIHL’s ₹9,650 Crore Bid to Acquire Reliance Capital​

IIHL emerged as the highest bidder in April 2023, offering ₹9,650 crore under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC).

With this acquisition, IIHL aims to expand its banking, financial services, and insurance (BFSI) business from the current valuation of $15 billion (as of September 30, 2024) to $50 billion in the next five years.

IIHL has already secured regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and stock and commodity exchanges.

Reliance Capital’s Governance Issues and RBI Intervention​

The RBI superseded Reliance Capital’s board in November 2021 due to governance concerns and payment defaults by the Anil Dhirubhai Ambani Group. Subsequently, the central bank appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 for the company’s takeover.

With the NCLT’s latest directive, the Reliance Capital resolution process moves closer to completion, ensuring a long-awaited ownership transition to IIHL.