Torrent Investment appeals NCLT to disqualify Hinduja Group's revised offer for Reliance Capital on technical ground

3 Jan 2023 , 12:53 PM

According to two people familiar with the development, Torrent Investments has asked the National Company Law Tribunal (NCLT) to order the administrator of Anil Ambani-promoted Reliance Capital not to accept the revised offer made by the Hinduja group entity a day after the auction concluded on December 21.

Torrent Investments filed an interlocutory application on January 3, one day before the pre-scheduled meeting of the committee of creditors and their advisors.

According to one of the people cited above, it has petitioned that the verified lenders and the administrator, Nageswara Rao Y, will be violating the law governing the corporate insolvency process by involving in negotiations with the ‘latecomer’ while referring to Hinduja.

Today, the CoC and their advisors will review and compare the plans received for Reliance Capital, which is in the process of going bankrupt.

Torrent Investments offered Rs8,640 crore on a net present value (NPV) basis on December 21, compared to Rs8,110 crore offered by Hinduja entity IndusInd International Holding. 

The following day, the Hinduja group increased its offer to Rs9,400 crore on an NPV basis. This includes an upfront cash payment of Rs8,750 crore, which is higher than the Rs3,750 crore offered by Torrent.

On December 23, Torrent sent a protest letter to the administrator, threatening legal action if lenders considered a late offer from Hinduja.

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