Piramal Capital and Housing Finance Ltd has initiated bankruptcy proceedings against the beleaguered Anil Ambani group, Reliance Power and it’s subsidiary Reliance Natural Resources . “Bankruptcy proceedings have been initiated by PCHFL against Reliance Power and RNRL under section 7 of the IBC Code 2016, in NCLT Mumbai,” said a person familiar with the development.
RNRL had in 2010 merged with Reliance Power.
RNRL had defaulted on a loan of ₹526.10 crore, obtained from the erstwhile Dewan Housing Finance Corporation Ltd (DHFL). The Piramal Group had acquired DHFL last year and PCHFL had been merged with DHFL.
Piramal Enterprises did not comment on an email query from BusinessLine on the issue. Significantly, Ajay Piramal’s son, Anand Piramal is married to Anil Ambani’s niece, Isha Ambani.
According to industry sources, “Piramal could have settled the issue through talks since there is an indirect family connection instead of taking legal recourse since the amount due was less than ₹600 crore.” However, legal experts said that this may have been an entirely business decision with no links to the two families.
Piramal’s move adds to Anil’s woes as most of his other businesses including Reliance Telecom, Reliance Naval and Reliance Capital have been dragged into insolvency.