Lenders Accuse IIHL of Delaying RCAP Resolution

Lenders to Reliance Capital Ltd (RCAP) have accused IndusInd International Holdings Ltd (IIHL), the successful bidder for its acquisition, of employing delaying tactics that are slowing the implementation of a Rs 9,861-crore resolution plan approved by the NCLT on February 27, 2024. They claim IIHL's recent request for approval from the Department of Industrial Policy and Promotion (DIPP) is an afterthought and was not part of the NCLT's original conditions. IIHL has maintained that all allegations are unfounded and that it aims to expedite the process to stop value depletion. The DIPP's approval has been pending for 90 days due to some IIHL shareholders being residents of Hong Kong, triggering regulatory requirements under Press Note 3. The NCLT has urged the Reserve Bank of India and DIPP to expedite the approval process, with the next hearing scheduled for September 19, 2024. IIHL has committed to payment of the full consideration, pending necessary regulatory clearances.