Corporate Grapevine     

Published: May 15, 2024
Updated: May 15, 2024

Hindujas’ Rel Cap bid come undone?

The Hinduja group had a meeting with lenders, seeking more time beyond the deadline of May 27 for making a payment worth Rs 9,661 crore for the takeover of Reliance Capital. The Hindujas want to clear all legal hurdles before paying to acquire the bankrupt firm which was earlier owned by Anil Ambani but failed to pay its debt of Rs 25,000 crore.

The CoC in its meeting has taken a tough stand and informed the Hinduja group to make the payment by May 27 or face action, including encashment of the Performance Bank Guarantee of approximately Rs 500 crore and cancellation of the letter of allotment. The CoC has also sought proof of the availability of funds from the Hindujas.

Meanwhile, the Reliance Capital Administrator has applied for extension to the RBI. The RBI approval on the transfer of the RCAP business to Aasia Enterprises, a Hinduja group company, lapsed recently. The approval granted on November 17, 2023 was valid for only 6 months. The RCAP Administrator has sought an extension of 10 days till May 27 from the RBI to conclude the transaction. If the Hindujas fail to pay on time, there are chances that the matter will go to litigation.