The National Company Law Tribunal (NCLT) ordered Hinduja Group-owned IndusInd International Holdings (IIHL) to deposit ₹2,750 crore in the escrow account opened by the Committee of Creditors (CoC) and abide by its Reliance Capital resolution plan.
The NCLT also allowed IIHL plea to complete the deal by August 10.
Subsequently, IIHL agreed to provide the binding term-sheet agreement to the monitoring committee and hold a meeting with all stakeholders.
IIHL petition
The NCLT bench, comprising Justices Virendrasingh G Bisht and Prabhat Kumar, was hearing a petition filed by IIHL seeking modification of its July 23 order and sought further time to implement the resolution plan.
While partly allowing the appeal, the NCLT directed IIHL to implement the resolution plan by August 10 and deposit the equity component of ₹2,750 crore in an escrow account designated by the CoC by July 31.
IIHL claimed that if the NCLT does not consider the modification of its order, the administrator, the CoC and IIHL will face inexplicable challenges in implementing the resolution plan for Reliance Capital.
Abhishek Manu Singhvi, senior counsel appearing for IIHL, submitted a ‘compliance affidavit’ stating that it has deposited the entire equity contribution of ₹2,750 crore. However, this amount has been deposited in the accounts of Ashok Hinduja, Harsha Hinduja and Shom Hinduja.
Earlier, IIHL claimed that for transferring funds banks in Mauritius have sought KYC details of the ‘Vistra’ account, a designated entity of the CoC, a duly-executed tripartite escrow agreement by all stakeholders, a copy of the resolution passed by IIHL’s board of directors and the end use of funds to be remitted.
In November 2021, the RBI superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. In February, the NCLT approved IIHL’s resolution plan for Reliance Capital.