Excerpt from The Times of India Article, Published on Aug 5 , 2024
The administrator of Reliance Capital (RCAP) has accused IndusInd International Holdings Ltd (IIHL) of non-compliance with a National Company Law Tribunal (NCLT) order to deposit Rs 2,750 crore into designated escrow accounts. The allegations were presented in an affidavit to NCLT, claiming that IIHL instead deposited the money into its own and its promoters’ accounts. IIHL has denied any wrongdoing, asserting that the NCLT’s order did not specify that the accounts needed to be operated or controlled by the Committee of Creditors (CoC). The affidavit, seen by PTI, states that IIHL placed the funds into accounts of Harsha Ashok Hinduja, Shom Ashok Hinduja, and Ashok P Hinduja, alongside its own accounts at Standard Chartered Bank, Mauritius, and State Bank of Mauritius.
IIHL responded by denying the accusations and claimed full compliance with the NCLT’s directives, stating, “There is neither any default nor any contempt by IIHL to comply with its obligations as directed by NCLT.”
Reliance Capital, with a debt of over Rs 40,000 crore, initially received bids from four applicants with resolution plans. However, all bids were rejected by the CoC for lower bid values, leading to a challenge mechanism in which IIHL and Torrent Investments participated. The ongoing dispute highlights significant tensions and raises questions about the adherence to judicial orders and the management of substantial financial transactions.
This controversy underscores the critical importance of clear and precise judicial directives and the need for stringent compliance to ensure transparency and accountability in financial proceedings.
To delve deeper into this topic, please read the full article on The Times of India.
