The lenders of debt-ridden Reliance Capital (RelCap) will meet on Monday to resolve concerns raised by the bidders ahead of the second round of auction scheduled on April 26, sources said.

The potential bidders, Torrent Investment and IndusInd International Holdings Ltd of Hinduja Group (IIHL), have expressed multiple reservations about the proposed auction and its terms and conditions.

According to sources, both the bidders have made it clear to the Committee of Creditors (CoC) that unless the issues raised by them are duly resolved to their complete satisfaction, they are unlikely to participate in the second round of auction.

The CoC is likely to meet again on Monday to address the concerns of bidders.

Both the bidders want finality, certainty, transparency, and no negotiation in value or on terms and conditions after the second round of auction is over, they said.

The two largest lenders of Reliance Capital — Employees’ Provident Fund Organisation (EPFO) and LIC — are against giving any such undertaking in advance.

Both want to keep the room for further negotiations open in case the final bid value in the second round of auction is below the liquidation value of Rs 13,000 crore, sources said.

The EPFO and LIC collectively hold over 30 per cent of voting rights in the CoC.

IIHL has also requested that the bidders participating in the auction should give an undertaking that they will not bid outside the challenge mechanism process. Similarly, bidders also want an undertaking from CoC that no bid outside the challenge mechanism will be considered by them.

Both Torrent and IIHL have taken a strong position on this, sources said, adding they wanted the process to be Insolvency and Bankruptcy Code (IBC) compliant, and the number of bidders must be notified 24 hours before the scheduled auction on Wednesday.

Torrent has requested to declare after every round how many bidders are participating in the next round and the value of their bids, sources said.