On November 29, 2021, the Reserve Bank of India (RBI) took control of Reliance Capital’s board due to payment defaults and significant governance concerns.
The Reserve Bank approved on Friday the resolution plan of debt-laden Reliance Capital, enabling the acquisition by IndusInd International Holdings Ltd (IIHL), a Hinduja Group entity. Reliance Capital, in a regulatory filing, confirmed receipt of a “No objection” letter dated November 17, 2023, from the RBI.
IIHL emerged as the top bidder with a Rs 9,650 crore offer during the second round of the auction in April. The RBI took control of Reliance Capital’s board on November 29, 2021, due to payment defaults and governance issues, appointing Nageswara Rao Y as the supervisor for the Corporate Insolvency Resolution Process (CIRP).
Reliance Capital is the 3rd prominent non-banking financial company (NBFC) facing bankruptcy proceedings initiated by the RBI beneath the Insolvency and Bankruptcy Code (IBC), following Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The central bank filed a CIRP initiation application against Reliance Capital at the Mumbai bench of the National Company Law Tribunal after the administrator invited expressions of interest for the company’s sale in February of the previous year.
