IndusInd International Holdings, the business owned by Hinduja Grue, has deposited Rs 2,700 crore to purchase Reliance Capital per the directives of the National business Law Tribunal (NCLT). As part of Reliance Capital’s current insolvency procedure, the money has been deposited in an escrow account, according to people familiar with the situation who spoke with NDTV Profit.
On August 8 itself, NCLT gave IIHL instructions to deposit this sum to the escrow account in the Reliance Capital bankruptcy case within the next 48 hours.
What’s the matter?
In fact, the Committee of Creditors (CoC) of Anil Ambani’s company Reliance Capital wrote a letter to IIHL, a subsidiary of the Hinduja Group of Mauritius, stating that it would be willing to pay Rs 2,750 crore as an equity contribution for the acquisition of RCap by the July 31 deadline. I failed to submit before. However, the Hinduja Group categorically disputed that it failed to deposit the money.
According to the NCLT ruling dated July 23, IIHL was required to pay its equity part of Rs 2,750 crore by July 31. However, IIHL refused to pay the debtors, asking that they meet certain escrow account requirements. Reliance Capital stated in an affidavit that IIHL moved Rs 250 crore and Rs 2,500 crore to its promoters’ accounts rather than the CoC’s escrow account. IIHL answered that it was awaiting the requisite escrow account information and that the company was acting in good faith.
Orders from NCLT and conformity
Additionally, by 4 PM on August 8, 2024, IIHL was mandated by the NCLT ruling to present a term sheet for an additional Rs 7,300 crore in funding. By sending the relevant paperwork to the Monitoring Committee, IIHL complied with this requirement. Reliance Capital, valued at Rs 9,650 crore under the Insolvency and Bankruptcy Code, would need this term sheet to back its resolution plan.
