The National Company Law Tribunal, Mumbai has directed RBI and the Department of Industrial Policy and Promotion (DIPP) to consider the application of IndusInd India Holdings for takeover of Reliance Capital.

Taking up the affidavit filed by IIHL for hearing on Monday, NCLT issued notices to RBI and DIPP to expedite the approval on IIHL application.

DIPP approval is required for securing ₹2,500 crore of equity infusion in Rcap by IIHL BFSI (India), a Mauritius entity.

The tribunal also noted that certain approvals from the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (Irdai) had lapsed and required renewal

In May, IIHL sought permission to pledge 100 per cent of Reliance Capital’s shares to raise ₹8,000 crore. IIHL proposed to raise ₹3,500 crore through secured non-convertible debentures, with Reliance Capital seeking an additional ₹4,500 crore from eligible investors. RBI is yet to approve the proposal to raise funds by pledging Reliance Capital shares.

NCLT also took cognisance of IIHL compliance on deposits of ₹2,500 crore and ₹250 crore in offshore and onshore escrow accounts of CoC and submission of binding executed term sheet.

NCLT also noted that certain steps to be taken by CoC and administrator for implementation of the plan including seeking extension from IRDAI for approval expired on August 10.

Directing all parties to jointly work to implement the resolution plan within an agreed time frame, NCLT posted the next hearing in the matter to August 28 and continued with the interim order of not to take coercive action against IIHL.

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