RBI-appointed administrator invites bids for resolution of Reliance Capital

As part of the resolution process, the RBI-appointed administrator on Friday invited expressions of interest (EoIs) for sale of debt-ridden Reliance Capital promoted by Anil Ambani Group.

The RBI had on November 29 last year superseded the board of Reliance Capital Ltd (RCL) in view of payment defaults and serious governance issues.

It subsequently filed an application for initiation of Corporate Insolvency Resolution Process (CIRP) against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).

Last date for receipt of EoI is March 11 and the last date for submission of resolution plans is April 20, 2022, Reliance Capital said in regulatory filing.

The RBI had appointed Nageswara Rao Y as the administrator in relation to the CIRP of the corporate debtor, it said, adding after due consultations with and approval of the Committee of Creditors (CoC), bids are invited for submission of resolution plans.

This is the third large NBFC against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently.

The other two were Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).

In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company's consolidated debt was Rs 40,000 crore.