Lenders to the beleaguered Reliance Capital (RCap) have opposed providing further extension to Hinduja Group as they believe it could further delay the ongoing insolvency process.
The lenders and administrator, who have opposed the extension, want the request for extension — pending before the National Company Law Tribunal (NCLT) — to be rejected, lawyers briefed on the matter said.
In May, hearing a plea filed by Hinduja Group seeking an extension to the May 27 deadline to complete the resolution process, the Mumbai bench of NCLT directed the committee of creditors (CoC) to file its response by June 3. The tribunal also directed the CoC not to take any action, including encashing the Rs 483 crore bank guarantee given by IndusInd International Holdings (IIHL).
NCLT also directed IIHL, the group firm through which the Hinduja Group had placed bids for RCap, to continue to seek all regulatory approvals for the completion of the process. The petition seeking an extension was opposed by the CoC and the administrator earlier also.
Earlier, IIHL, which had received the crucial insurance regulator’s approval to conclude the acquisition of RCap three insurance companies, had asked the CoC to provide it more time as the regulator’s approvals came with certain conditions.
A lawsuit challenging the second e-auction filed by Torrent Group, is now pending before the Supreme Court and needs to be concluded. The apex court is slated to hear the case this month, while the firm also needs approvals for a change in proposed holding structure.