Reliance Capital defaults on interest payments to HDFC, Axis Bank

Firm claims Delhi High Court, DRT rulings restrain payments; Reliance Home Fin also defaults on interest payment on term loan and cash credit

Reliance Capital Ltd has defaulted on payment of interest of Rs 4.76 crore to HDFC and Rs 0.71 crore to Axis Bank on term loans. It failed to pay up interest on January 31, 2020.

The delay in debt servicing is due to Delhi high Court order (November 20, 2019) prohibiting the Company to dispose off, alienate, encumber either directly or indirectly or part with the possession of any assets, company said in filing with BSE.

Also the Debts Recovery Tribunal, in proceedings initiated by Vistra ITCL (India) Ltd on December 3, 2019, prohibited the Company from transferring, alienating, encumbering or parting