Banks have taken a huge 83% haircut on the sale of Alok Industries bagged by the Reliance Industries (RIL)-JM Financial ARC combine for just Rs 5,000 crore. The near-bankrupt Alok Industries owed lenders a whopping Rs 30,000 crore. The committee of creditors (CoC) on Friday approved the resolution plan submitted by RIL-JM Financial. If approved by the bankruptcy tribunal, this will be the third large resolution under the Insolvency and Bankruptcy Code (IBC) from among the first list of 12 large defaulters, after Bhushan Steel and Electrosteel Steels. In the case of Bhushan Steel, bankers were fortunate to get away with a haircut of only 37% since Tata Steel\u2019s offer was for Rs 35,200 crore. However, the haircut for Electrosteel Steels was a steep 60% since Vedanta offered Rs 5,320 crore against lenders\u2019 outstandings of Rs 13,175 crore. In a statement to the stock exchanges on Friday, RIL said its resolution plan was put to vote before the CoC on June 20 and has received the assent of 72.192% of the total votes. The voting threshold required to pass a resolution was recently lowered to 66% from 75% earlier following an amendment to the IBC. The RIL-JM Financial ARC alliance now requires approval of the National Company Law Tribunal (NCLT) to gain control of the company. Emails sent to State Bank of India (SBI) and JM Financial seeking comments remained unanswered till the time of going to press. The re-voting took place after the Ahmedabad bench of the NCLT earlier this month directed Ajay Joshi, the resolution professional (RP), to consider the voting process with respect to the amended insolvency code. The tribunal had said that considering the amendment to the IBC, it was of the \u201cconsidered opinion that resolution professional is legally expected to present the resolution plan of the sole resolution applicant before the CoC for a relook and for proper consideration.\u201d The NCLT had directed the RP to consider the voting process as per the amended provisions of the code and to submit its report along with recommendation or resolution of the CoC by June 26. Following the new amendment, employees of Alok Industries and a group of operational creditors had pleaded to the NCLT to accept the resolution plan, taking the amendment into account. Alok Employees Benefit and Welfare Trust had also demanded a rejection of the liquidation proposal filed by the RP. As is known, Alok Industries attracted just one bid from the RIL-JM Financial ARC combine in the ongoing insolvency process under the IBC. While 70% of the lenders had voted in favour of the resolution in April, it was lower than the 75% required under the erstwhile IBC norms for the proposal to go through. Lenders had indicated to FE that under the RIL-JM Financial ARC resolution plan, they would have received approximately Rs 4,700 crore. They also said that the liquidation value for the business had been placed at close Rs 4,433 crore, while the fair value had been estimated at around Rs 5,400 crore. Among the lenders to the company are SBI, which has the biggest exposure, Axis Bank, Corporation Bank, UCO Bank, Bank of Maharashtra, Life Insurance Corporation of India, Allahabad Bank, Union Bank of India, Dena Bank, Oriental Bank of Commerce and United Bank of India.