Reliance Capital Insolvency: Hindujas Deposit Rs 2,700 Crore In Escrow

In compliance with directions from the National Company Law Tribunal, the Hinduja Group-owned IndusInd International Holdings Ltd. has deposited Rs 2,700 crore into an escrow account selected by the Committee of Creditors, as part of the ongoing insolvency process of Reliance Capital Ltd., people familiar with the matter told NDTV Profit.

However, IIHL is currently awaiting government approval for foreign direct investment, before proceeding with further compliance measures, the person said on the condition of anonymity.

Previously, the NCLT had directed IIHL to deposit Rs 250 crore into an Indian escrow account for domestic equity and an additional Rs 2,500 crore into an offshore escrow account for foreign equity, contingent upon obtaining the necessary governmental approvals.

The tribunal also mandated that IIHL submit term sheets for a Rs 7,300 crore loan, which was to be deposited into a designated account by an extended deadline, subject to FDI approval.

IIHL was also instructed to provide an affidavit by July 31, confirming its compliance with these obligations. Due to compliance-related challenges, IIHL requested an extension, leading the NCLT to direct the company to deposit the funds into an escrow account chosen by the CoC.

Reliance Capital is seeking a 16% interest on the Rs 7,500-crore amount, a term that IIHL has not agreed to. The situation remains under the scrutiny of the NCLT as the parties work towards resolving these financial and compliance complexities in the ongoing insolvency proceedings.