The administrator of Reliance Capital (RCAP), facing financial difficulties, has accused IndusInd International Holdings Ltd (IIHL) of failing to comply with the National Company Law Tribunal (NCLT) order dated July 23. In an affidavit filed with the NCLT, the administrator claimed that instead of depositing Rs 2,750 crore into the designated escrow accounts as required, IIHL deposited the funds into its own accounts and those of its promoters. IIHL, however, stated in a separate affidavit that it had funds ready for transfer but was awaiting the establishment of escrow accounts as per agreed conditions.
According to the NCLT’s July 23 order, IIHL was required to deposit Rs 250 crore in a domestic escrow account and Rs 2,500 crore in an offshore escrow account by July 31, 2024. The administrator alleged that IIHL deposited the funds into accounts belonging to Harsha Ashok Hinduja, Shom Ashok Hinduja, and Ashok P. Hinduja, as well as its own accounts at Standard Chartered Bank, Mauritius, and State Bank of Mauritius.
The administrator further claimed that IIHL had not provided details of the binding term sheets for raising Rs 7,300 crore in debt to the monitoring committee, thus failing to meet the conditions set by the NCLT. The administrator argued that IIHL’s request for modifications to the July 23 order is a delaying tactic and should be rejected. The NCLT hearing on IIHL’s plea is scheduled for next week.
Following IIHL’s missed deadline on May 27, the NCLT extended the deadline to August 10. The Hinduja Group firm cited pending regulatory approvals and compliance requirements for the extension. The NCLT had approved IIHL’s Rs 9,650-crore resolution plan for Reliance Capital on February 27, 2024. In November 2021, the Reserve Bank of India had intervened, superseding the board of Reliance Capital due to governance and payment issues, and appointing Nageswara Rao Y as administrator.
