Suspense Crime Sach Ka Dam
The Department for Promotion of Industry and Internal Trade (DPIIT) has approved Hinduja Group company IIHL for the acquisition of debt-ridden Reliance Capital Limited. Sources have given this information. DPIIT’s approval was necessary because some shareholders of IndusInd International Holdings Limited (IIHL) are residents of Hong Kong, a special administrative region controlled by China. According to Press Note-3, if an entity of a country sharing a land border with India (China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan), or a citizen or permanent resident of any such country is the beneficial owner of the investment in India, then they must invest through the government approval route.
This will help in taking the resolution plan forward.
According to sources, the green signal from the DPIIT will help advance the resolution plan submitted by Mauritius-based IIHL, which has emerged as the successful bidder with a bid of Rs 9,861 crore for the debt-ridden financial firm. The Mumbai bench of the National Company Law Tribunal (NCLT) approved the resolution plan of IIHL on February 27, 2024. The DPIIT approval was part of the resolution plan that was voted on and approved by 99.96 percent of the members of the Committee of Creditors (CoC).
The deal has to be completed by January 31, 2025
This approval was important as the Hinduja Group had to complete the deal by the extended deadline of January 31, 2025. If the deadline is not met, the group will have to return the amount of Rs 3,000 crore raised from HNIs (rich individuals), ultra-HNIs (very rich individuals), and family offices for the deal. In November 2021, the Reserve Bank of India (RBI) superseded the board of directors of Reliance Capital due to governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.
