Two prospective bidders of debt-laden Reliance Capital (RCap) have sought clarity and assurances that their demands should be met ahead of the e-second process, now slated for April 26. The Committee of Creditors (CoC) of RCap will meet on Monday to discuss the bidders’ concerns and finalise the bidding process.

The bidders – Gujarat-based Torrent Group and IndusInd International Holdings Ltd (IIHL) – have categorically stated that they have reservations on certain conditions in the proposed second e-auction. They want the issues to be ironed out “immediately” or they would not be taking part in the extended challenge mechanism, sources close to the development said.

The move comes after RCap’s CoC expressed their inability to assure a “finality” of the insolvency process through the second e-auction as they would opt for further negotiations for value maximisation. Another round of multiple e-auctions would further delay the former Anil Ambani group company’s insolvency process.

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During the first e-auction, Torrent Group had placed its bids through a group company Torrent Investments, while that by the Hinduja Group was through IIHL.

The bidders had sought to include a clause that the second e-auction would be the final one, which was opposed by RCap’s largest lenders, Life Insurance Corporation of India (LIC) and Employees’ Provident Fund Organisation (EPFO). The lenders – LIC and EPFO – who have a combined voting rights of 30% in the CoC and combined admitted claims of ₹8,200 crore, wanted multiple rounds if the auction prices were below the liquidation value.

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The bidders had also sought a “transparency” in the extended challenge mechanism such as information on the number of bidders participating in the round and value of their bids. Further, the e-auction should be held even if there was only one bidder in the race, a “zero date” payment policy starting from the date of non-objection certificates and for changes in the terms of ‘force majeure’ were among other demands.

The CoC’s last week meeting was adjourned with the lenders being “undecided” on most of the requests, while a demand for ‘no toppling bids’ (accepting bids outside the e-auction) was approved.