Business News Desk,The National Company Law Appellate Tribunal (NCLAT) has accepted the plea for another round of auction of lenders in the resolution case of Reliance Capital (Rcap). Debt-ridden Reliance Capital is currently in the insolvency process. The NCLAT set aside the order of the National Company Law Tribunal (NCLT), saying that the Committee of Creditors (CoC) has the right to place the higher bid. The Appellate Tribunal has allowed the CoC to continue with the challenge mechanism and invite bids after two weeks.
NCLAT has given this order on the petition of Vistara ITCL (India) Limited. Vistara is one of the lenders to the Anil Ambani-promoted company. The petition challenged the order of NCLT which had stayed further auction for the insolvent company. In the case of Reliance Capital, Torrent Investments was the highest bidder at Rs 8,640 crore. However, the company’s committee of creditors decided to introduce a second challenge mechanism. Thereafter, IndusInd International Holdings Limited (IIHL), a Hinduja group company, submitted a revised bid.
Torrent Investments challenged this before the Mumbai bench of NCLT. The NCLT had on February 2 said that the challenge mechanism for the financial bid has been completed on December 21, 2022. Torrent Investments then filed a fresh petition on January 9, urging the tribunal to stay the lenders’ new auction plan. Later IIHL also filed a petition challenging the NCLT order. IIHL appealed against the order of NCLT to the Appellate Tribunal. Reliance Capital, which is going through the resolution process, has a total debt of Rs 40,000 crore.