IndusInd International Holdings Ltd Takes Control of Reliance Capital
IndusInd International Holdings Ltd (IIHL), a company under the Hinduja Group, has successfully taken control of Reliance Capital (RCAP), following a significant legal development. This comes after RCAP lenders withdrew their petition against IIHL in front of the National Company Law Appellate Tribunal (NCLAT).
- Reliance Capital had been under RBI-appointed administration since November 2021 due to issues like governance lapses and payment defaults.
- Anil Ambani, the former owner of Reliance Capital, faced difficulties, which led to the company’s financial troubles.
Lenders Withdraw Petition Against IIHL
According to reports, the Committee of Creditors (CoC) of Reliance Capital informed NCLAT that IIHL had fully implemented the resolution plan by transferring the complete payment amounts required.
- The NCLAT allowed the withdrawal of the appeal against the resolution plan, officially clearing the way for IIHL to proceed.
- The withdrawal came with no objections from IIHL or the administrator overseeing RCAP.
IIHL Emerges as Successful Resolution Applicant
IndusInd International Holdings Ltd had previously won the resolution process by submitting the highest bid of Rs 9,650 crore in April 2023. This bid was part of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).
- The process aimed to resolve the debt issues of Reliance Capital, and IIHL was given until May 27, 2024, to finalize the plan.
- The timeline was later extended to August 10, 2024, giving IIHL more time to complete the necessary steps.
Steps Taken by IIHL for Implementation
During the extended period, IIHL worked closely with the administrator of RCAP and the CoC to ensure the successful implementation of the resolution plan.
- IIHL submitted a process note detailing the steps taken during this phase, which was later approved by the CoC and noted by NCLAT.
- IIHL paid the required amounts and finalized the acquisition, paving the way for IIHL to assume control of Reliance Capital.
Legal Disputes and NCLAT Intervention
Previously, Reliance Capital’s lenders had approached the NCLAT, seeking modifications to the order issued by the National Company Law Tribunal (NCLT) in July 2024.
- The lenders had requested the appellate tribunal to ensure interest was paid on the Upfront Cash Amount from IIHL and also on the debt component until the transfer was completed.
- NCLAT issued notices to IIHL and reviewed these requests, which ultimately did not hinder the resolution process.
IIHL Takes Control of RCAP
On March 19, 2025, IndusInd International Holdings Ltd officially took control of Reliance Capital after a lengthy resolution process.
- IIHL now controls not only Reliance Capital but also its key subsidiaries, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Securities, and Reliance Asset Reconstruction.
- This marks a new chapter for the Hinduja Group, which now holds the reins of one of the largest financial services firms in India.
