IIHL concerned over GST liability for RCap resolution plan implementation

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Hinduja Group-owned IndusInd International Holdings on Wednesday contended before the National Company Law Tribunal that the GST liability of Rs 850 crore is a sticky issue in the implementation of Reliance Capital's resolution plan.

Senior counsel Abhishek Manu Singhvi, representing IndusInd International Holdings, told the tribunal that it has received 7 approvals, including from the RBI and Sebi.

He said that as directed by the tribunal on August 12, IIHL held a joint meeting with the CoC to sort out various issues.

Singhvi, however, raised concern over the GST liability of Rs 850 crore.

He further said that the company is prepared to pay Rs 9,861 crore, however, there is an issue of GST liability of Rs 850 crore.

"We had a joint meeting (IIHL and the CoC) to sort out issues. However, the GST liability remains a sticky issue. The GST liability of Rs 850 crores is clearly already covered in the NCLT February 27 order, which says waiver of any tax, including but not limited to income tax and GST," he added.

The tribunal, comprising Justice Virendrasingh G Bisht and Justice Prabhat Kumar, kept the matter for further hearing on September 19.

Counsel Prateek Seksaria, appearing for the Committee of Creditors (CoC), said it cannot be an endless process.

"Besides the approvals, all other issues are not relevant as far as implementation of the plan is concerned," he added.

On August 12, the NCLT directed the Reserve Bank and the Department of Industrial Policy and Promotion (DIPP) to expedite the approvals to the Hinduja Group-promoted IndusInd International Holdings (IIHL) which are needed to implement the Reliance Capital's resolution plan.

The NCLT on February 27, 2024, approved IIHL's Rs 9,650-crore resolution plan for Reliance Capital.

In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.