Reliance Capital’s lenders have withdrawn their petition against IndusInd International Holdings Ltd (IIHL) before the National Company Law Appellate Tribunal (NCLAT). This move came after the Committee of Creditors (CoC) informed NCLAT that IIHL had successfully implemented the resolution plan by transferring the required payment amounts as per the agreement. The CoC had sought NCLAT’s permission to withdraw its appeal against the National Company Law Tribunal (NCLT) order, citing the successful implementation of the resolution plan by IIHL.
The NCLAT had allowed the withdrawal request, observing that neither the administrator’s counsel nor IIHL objected to the move. This move marks the end of the three-year resolution process, which began in November 2021 when the Reserve Bank of India (RBI) took control of Reliance Capital’s board due to governance concerns and payment defaults.
Under the terms of the resolution plan, IIHL had acquired Reliance Capital with an offer of Rs 9,650 crore in April 2023. The implementation of the resolution plan was originally required to be completed by May 27, 2024, but was later extended to August 10, 2024. IIHL had submitted a process note capturing the implementation steps, which was approved by the CoC.
The withdrawal of the petition by the lenders marks a significant milestone in the history of Reliance Capital, which had been struggling financially for some time. With the successful implementation of the resolution plan, Reliance Capital is now under the control of IIHL, which has assumed control of the company’s board and key subsidiaries, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities, and Reliance Asset Reconstruction.