Home Business Reliance Capital Resolution: NCLAT allows lenders to call for another bid

Reliance Capital Resolution: NCLAT allows lenders to call for another bid

by Trend News
2 minutes read
Reliance Capital Resolution: NCLAT allows lenders to call for another bid.

Now the second round of bidding can be done regarding Reliance Capital. The National Company Law Appellate Tribunal ie NCLAT has accepted the bank’s petition in the Reliance Capital Resolution case.

Second round bidding for Reliance Capital

The tribunal has allowed Reliance Capital’s lenders’ petition seeking the second round of auction. Reliance Capital is deep in debt. Currently going through the insolvency process.

NCLT order set aside

A two-member bench of the tribunal set aside the NCLT order. Also said that the Committee of Creditors (CoC) has the right to bid more. The Appellate Tribunal allowed the Committee of Creditors (CoC) to continue with the challenge mechanism and invite fresh bids after two weeks.

Verdict on Vistara ITCL India’s petition

NCLAT has given this order on the petition of Vista ITCL India Limited. Vistara is one of the lenders to the Anil Ambani promoted company. In the petition, the order of NCLT was challenged in which the auction of the bankrupt company was banned. In the case of Reliance Capital, Torrent Investments made the highest bid of Rs 8,640 crore.

Rs 40,000 crore debt on Reliance Capital

Torrent Investments challenged this before the Mumbai Bench of NCLT. NCLT said on 2 February that the challenge mechanism for the financial bid has been completed on 21 December 2022. After this, Torrent Investments filed a fresh petition on January 9, appealing to NCLAT to stay the plan of fresh auction of creditors. Later, IIHL also filed a petition challenging the NCLT order.

Reliance Capital is going through the insolvency process. The company has a total debt of Rs 40,000 crore.

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