The Reserve Bank of India (RBI) has approved five Hinduja Group representatives as directors on the board of Reliance Capital, which is undergoing insolvency proceedings.
Sources said the directors are: Amar Chintopanth, Shardchandra V Zaregaonkar, Moses Newling Harding John, Bhumika Batra, and Arun Tiwari.
The RBI’s approval came along with its ‘no-objection’ for IIHL’s Rs 10,000 crore resolution plan for Reliance Capital, and the proposed transfer of control of the bankrupt company to IIHL’s wholly owned subsidiary, IIHL BFSI (India).
The RBI has stipulated that pursuant to the change of control and management, the company will maintain strict arm’s length distance with respect to any transaction with the IndusInd Bank, which is owned by the Hinduja Group.
It also said that after the implementation of the resolution plan, any change in the shareholding will be subject to the prior approval of the RBI.
It directed that a copy of an order by the National Company Law Tribunal (NCLT) approving the IIHL’s resolution plan will have to be submitted to the bank.
The NCLT’s approval for IIHL’s resolution plan is pending as the Supreme Court is yet to decide on the Torrent Investment’s plea against the second round of auction held by the for the lenders of Reliance Capital.
A hearing on Torrent’s plea in the Supreme Court is scheduled for this week. Torrent was the highest bidder in the first round.
First Published: Nov 20 2023 | 12:49 PM IST