Lenders to Reliance Capital accuse IIHL of employing stalling tactics, but the company denies the charges.

Lenders to Reliance Capital Ltd (RCAP), which is facing significant debt issues, have accused IndusInd International Holdings Ltd (IIHL) of stalling the resolution process. They claim that this delay is impeding the implementation of the approved resolution plan. IIHL, which successfully bid for RCAP's acquisition, has denied these accusations, asserting that they are false and intended to obstruct the process. The company emphasizes that it has already deposited ₹2,750 crore with the Committee of Creditors (CoC) and is eager to finalize the acquisition to stop the ongoing devaluation of RCAP and focus on growth.

The National Company Law Tribunal (NCLT) in Mumbai approved IIHL's ₹9,861-crore resolution plan for RCAP on February 27, 2024. However, lenders have raised concerns about IIHL seeking additional approval from the Department of Industrial Policy and Promotion (DIPP), which they argue was not a condition of the NCLT’s approval. They also note that it has been 90 days since IIHL’s application to DIPP, with no decision yet. IIHL counters that DIPP approval was part of the resolution plan voted on and approved by 99.96% of the CoC. The DIPP approval is necessary due to the presence of shareholders from Hong Kong, a region controlled by China.