NCLT extends Reliance Capital resolution process deadline to January 31

New Delhi: The National Company Law Tribunal (NCLT) has for the third time extended the deadline for the resolution process of debt-ridden Reliance Capital to January 31. This is the third time that the deadline has been extended, sources said. In February this year, the RBI-appointed administrator invited expressions of interest for the sale of Reliance Capital.

As per the Insolvency and Bankruptcy Code (IBC) rules, the administrator had to originally close the resolution of RCL within 180 days by June 3, 2022.

Earlier, the lenders of Reliance Capital had been given an extension of 30 days to the bidders for submission of binding bids, along with an EMD of Rs 75 crore by October 31.

The bidders were not happy with 30 days extension as most of them had sought an extension by 2-4 months.

Reliance Capital had received 14 non-binding bids

Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries.

Torrent, IndusInd Bank, Oaktree, Cosmea Financial, Authum Investment, and B Right Real Estate have submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for Reliance Capital's entire assets, the sources said.

For Reliance General Insurance business, Piramal Finance has offered Rs 3,600 crore, while Zurich Insurance's bid is at Rs 3,700 crore, the sources said, while the third bidder Advent has offered Rs 7,000 crore.

Jindal Steel and Power and UVARC has also submitted bids for Reliance Capital's ARC business.

For other assorted assets of Reliance Capital, three bidders – Choice Equity, Global Fincap and Grand Bhawan have submitted their bids, the sources said. The Reserve Bank of India (RBI) on November 29 last year superseded the board of RCL in view of payment defaults and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The RBI subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the NCLT.

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