Hinduja Group, which recently received the crucial insurance regulator’s approval to conclude the acquisition of Reliance Capital’s (RCap) three insurance companies, has sought more time to make the payment to the lenders. 

The original deadline for completion of RCap’s insolvency proceedings ends on May 27. The buyer, according to the resolution proposal submitted before the National Company Law Tribunal (NLCT), has to make the payments before the deadline.

IndusInd International Holdings (IIHL), a group firm through which the Hinduja Group had placed bids for RCap, has asked the committee of creditors (CoC) to provide it more time as the regulator’s approvals came with certain conditions, sources close to the development said.

These approvals were subject to certain regulatory, statutory and judicial clearances and compliances. A lawsuit challenging the second e-auction is now pending before the Supreme Court and it needs to be concluded, while the firm also needs approvals for a change in proposed holding structure, they added.

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On Friday, the Insurance Regulatory and Development Authority of India permitted transfer of RCap’s 26% stake in three insurance firms to Aasia Enterprises, a private family firm with 90% stake held by Ashok P Hinduja (Hinduja Group chairman), 5% each by Harsha A Hinduja (Hinduja Foundation trustee) and Shom A Hinduja (president, alternative energy and sustainability at Hinduja Group). The CoC has also sought proof of the funds from the Hinduja group.

Last week, Ashok P Hinduja had said that IIHL tied up the funds needed for the deal — of which 25% would be equity that would come from a subsidiary of IIHL, while the remaining 75% will be debt.

A consortium of banks has given a letter stating they will provide the money within 48 hours of all approvals. IIHL had got all other approvals, including from the Sebi, RBI and CCI, and was awaiting the Irdai approval.

Earlier this month, Hinduja Group had also proposed to change the holding structure of the firms through which it intends to takeover debt-laden RCap through an insolvency process. This approval is expected “anytime soon”, they had said.