IIHL, after transferring the funds ,has asked the CoC and administrator to implement the approved resolution plan for Reliance Capital
Mumbai: Complying with the National Company Law Tribunal (NCLT), Hinduja owned IndusInd International Holdings Limited (IIHL), the winning bidder for Reliance Capital under the Insolvency and Bankruptcy Code, has deposited Rs 2,750 crore into the Committee of Creditors (CoC) and Vistra escrow account a day before the August 10 deadline
IIHL also has provided term sheet, consisting of plans to raise debts, for remaining funds of around Rs 7300 crore for completing the Rs 9,750 deal.
IIHL, after transferring the funds ,has asked the CoC and administrator to implement the approved resolution plan.
NCLT will continue its hearing on Reliance Capital on Monday.
Earlier, on the basis of a petition by Reliance Capital’s Administrator, Nageswara Rao Y , the NCLT on August 8 had asked IIHL to transfer Rs 2750 amount within 48 hours and submit binding executed term sheet for the debt component to the Monitoring Committee by end of the day.
The NCLT had also clarified that interest earned on the funds in these escrow accounts will belong to the CoC.
“Till the final disposal of this application the CoC will l not take any coercive steps, including invocation of performance bank guarantee, NCLT had instructed to CoC.
Reliance Capital’s Administrator, Nageswara Rao Y in its affidavit filed in NCLT, on Aug 8, accused IIHL of contempt of court and had mentioned that instead of depositing the funds as directed, IIHL transferred Rs 250 crore into the accounts of its promoters and the remaining Rs 2,500 crore into its own accounts, rather than the designated CoC escrow account.
The affidavit further alleged that IIHL failed to comply with the NCLT’s July 23 order, which required Hindujas to deposit Rs 2,750 crore into the CoC’s escrow accounts and submit details of a Rs 7,300 crore loan by specified deadlines.
However IIHL had counter argued that the CoC had not provided the necessary escrow account details and accused the CoC of failing to comply with the NCLT’s order. The NCLT in its s July 23 order had extended the deadline for the Reliance Capital resolution plan to August 10.