RCapital Insolvency: NCLT rules in favour of Hinduja Group, extends deadline for completion of CIRP
NCLT stated that the Hindujas do not have to pay interest on the delayed payments due to an extension of the timeline. NCLT also says cash recovered from Reliance Capital during the corporate insolvency period belongs to the Committee of Creditors.
The lenders had asked Hinduja to deposit ₹2,750 crore equity in an escrow account. This amount is the equity portion of the offer made by Hinduja Group’s IndusInd International Holdings Limited for Reliance Capital. The rest of the amount is proposed to be raised as debt by IIHL to repay lenders. The lenders wanted Hindujas to pay 12% interest on the bid amount for the period of delay, however, the NCLT has ruled otherwise.
