NCLT asks Hinduja-led IIHL to deposit Rs 2,750 cr in a special escrow account within 48 hours

Mumbai: The National Company Law Tribunal on Thursday directed the Hinduja Group-promoted IndusInd International Holdings (IIHL) to deposit Rs 2,750 crore in a special escrow account within 48 hours as part of Reliance Capital's resolution plan.

The Mumbai bench of the tribunal, comprising Justice Virendrasingh G Bisht and Justice Prabhat Kumar, also clarified that the interest on the money in the CoC/Vistra escrow account will belong to the Committee of Creditors.

The NCLT Mumbai bench was hearing a petition filed by the Hindujas seeking modification of the tribunal's July 23 order and an 'extension to complete the obligations' for implementing the resolution plan.

IIHL was also asked to disclose the term sheet for Rs 7,300 crore fundraising through debt to the Monitoring Committee.

While partly allowing an appeal by IIHL, the tribunal directed the company to implement the resolution plan by August 10 and to deposit Rs 2,500 crore in the offshore escrow account of Vistra with Yes Bank in the Gift City and Rs 250 crore in the Vistra's Yes Bank escrow account in Mumbai.

Hindujas' counsel Abhishek Manu Singhvi urged that if the NCLT does not consider the modification of its order, the administrator, the CoC and IIHL will face inexplicable challenges in implementing the resolution plan for Reliance Capital.

Singhvi submitted a 'compliance affidavit' stating that it has deposited the entire equity component of Rs 2,750 crores. However, this amount has been deposited in accounts of Ashok Hinduja, Harsha Hinduja, and Shom Hinduja.

The administrator argued that IIHL was seeking minor changes to the order and trying to shift the responsibility for implementing the plan onto them, which is not in accordance with the resolution plan.

In an order on May 26, the tribunal approved IIHL's application for an extension of the May 27 deadline for paying Rs 8,000 crore to acquire Reliance Capital.

The group had cited pending regulatory approvals and compliance requirements as reasons for the extension. On June 29, 2023, the lenders to the crippled Reliance Capital accepted the revised Rs 9,661-crore bid put forth by IIHL.

IIHL made the highest cash offer of Rs 9,661-crore in the auctions and secured as much as 99 per cent of the lender's votes.

The bid also included the Rs 500-crore cash balance with Reliance Capital going to the lenders, taking the overall recovery to Rs 10,200 crore or about 65 per cent as against Rs 16,000 crore principal secured debt the crippled company owed to lenders.

Meanwhile, a lawsuit challenging the second e-auction filed by Torrent Group is pending before the Supreme Court and needs to be concluded.