The Hinduja Group has rejected lenders’ demand to implement the resolution plan for Reliance Capital (RCap) by March 31, including the release of payment, saying that it is not “tenable”.
Implementing the resolution plan, especially of the size and scale of RCap, “in less than one month and 10 days (from the date of the National Company Law Tribunal order), is not only untenable and impractical, but unimaginable,” IndusInd International Holdings (IIHL) said in a letter to the administrator.
The Hinduja Group had bid for RCap trhough IIHL. RCap’s lenders have been seeking implementation of the resolution plan by the end of this month. The NCLT on Wednesday, however, permitted the process to be completed by May 27.
IIHL also said that it continues to remain committed to implement the resolution plan within the timeline and in conformity with the NCLT order.
According to RCap’s Committee of Creditors (CoC), it was yet to get certain documents and information, including those pertaining to regulatory approvals, needed for faster completion of the resolution process.
The tribunal, in its February 27 order, directed IIHL to implement the resolution plan within 90 days, after obtaining the necessary regulatory approvals.
Earlier this month, the CoC — which includes Life Insurance Corporation of India (LIC) and Yes Bank — asked Hinduja Group to implement the resolution plan before the end of this month.
This was as per a discussion it had with the Hinduja Group. On December 13, 2023, IIHL had committed to implement the resolution plan and make payments to the lenders before March 31. This was later reiterated by IIHL representatives in a CoC meeting held on December 22, 2023.