Lenders to debt-ridden Reliance Capital Ltd (RCap) have alleged that Hinduja-group promoted IIHL is indulging in delaying tactics resulting in slowdown in the implementation of the resolution plan, but the Hinduja Group firm has refuted the allegations, saying it was following due process.
Mauritius-based IndusInd International Holdings Ltd (IIHL) emerged as a successful bidder for the acquisition of Reliance Capital.
“All allegations are completely false, baseless and are an attempt to malign and obstruct the resolution process,” IIHL sources said.
“All allegations are incorrect and untrue. There is absolutely no reason for IIHL to delay the implementation of the plan, more so, when IIHL has already deposited ₹2,750 crore with the CoC,” the company sources said.
Contrary to allegations, it is in IIHL’s interest to close the implementation at the earliest and take possession of the company so that the depletion of value that is happening on a daily basis can be immediately stopped and IIHL can focus on growth, they said.
The NCLT Mumbai on February 27, 2024, approved IIHL’s ₹9,861-crore resolution plan for the debt-ridden financial firm.
According to sources, lenders claimed that IIHL’s move to seek approval from the Department of Industrial Policy and Promotion (DIPP) is an afterthought.
It was not even a part of conditions set out by the NCLT while approving the resolution plan on February 27, 2024.
According to sources, 90 days have passed since IIHL submitted the application with the DIPP, but the approval is still pending.
As regards DIPP approval, IIHL sources said it was part of the same resolution plan which was put to vote and approved by 99.96 per cent of the committee of Creditors (CoC).
DIPP approval is required as some of the shareholders of IIHL are residents of Hong Kong, a special administrative region controlled by China.
Earlier on August 12, the National Company Law Tribunal (NCLT) directed the Reserve Bank of India (RBI) and DIPP to expedite the approval process to implement RCap’s resolution plan by IIHL.
