Religare Enterprises Ltd (REL) said its wholly-owned subsidiary Religare Finvest Ltd (RFL) completed a One-Time Settlement (OTS) with 16 lenders on March 8 by making a full and final payment of ₹400 crore.
The final payment was made in advance of the three-month deadline mentioned in the settlement agreement with lenders on December 30, 2022.
The settlement is the last milestone in the closure of legacy issues emanating from the misconduct of the erstwhile promoters.
Since January 2018, when the new management took over, RFL has repaid over ₹9,000 crore to its lenders from its collections and with the support of REL.
This settlement paves the way for restarting business and focusing on building a niche in the MSME lending space.
In line with its objective to focus on the rapid growth of its affordable housing finance business, RFL’s subsidiary, RHDFCL, will be made a direct subsidiary of REL in due course.
Commenting on the development, Rashmi Saluja, Executive Chairperson, REL said “RFL’s OTS is a one-of-its-kind revival wherein the management has been able to conclude legacy issues faced by the Religare Group on account of fraudulent activities of the erstwhile promoters, and has still paid a significant amount to lenders while preserving the long-term value of the Religare Group.
“I am confident that Religare 2.0 will grow faster and foray into newer businesses to become a 360-degree financial services group and enhance value for all its stakeholders.”
Pankaj Sharma, CEO, RFL said: “Post the one-time settlement, RFL has embarked on a journey to revive its business, having achieved a critical milestone to strengthen its financials and meet regulatory ratios. Going forward, we will continue to focus on lending to micro and small enterprises (MSMEs) by building a granular book and creating a niche for RFL in a critically important segment for theIndian economy.”