Reliance Capital to be rebranded under IndusInd after takeover, Hindujas tell NCLT

Mumbai: The Hinduja Group-owned IndusInd International Holdings Ltd clarified before the Mumbai bench of the National Company Law Tribunal on Tuesday that Reliance Capital will be rebranded under the ‘IndusInd’ name after the takeover of the insolvent company.

“The Hindujas have no desire whatsoever to carry on business under the brand ‘Reliance’. We are anxious that the transition should be done as quickly as possible... because we want to leave this baggage of using the ‘Reliance’ brand behind," Venkatesh Dhond, senior counsel appearing for the Hindujas said.

"However, the implementation process will take time. In case ADAVL’s (Anil Dhirubhai Ambani Ventures Ltd) concern is that we (Hindujas) will run the company under the Reliance brand, it is factually misconceived,” Dhond added.

A bench led by Justice Virendrasingh G. Bisht and Prabhat Kumar was hearing a plea filed by the Anil Dhirubhai Ambani group seeking to restrain IIHL from using the brand ‘Reliance’.

The bench gave the parties two days to file written submissions and posted the matter for hearing on 3 September.

The dispute arises from a brand licensing agreement of April 2014, that was signed between ADAVL and Reliance Capital for ten years. However, the agreement ended in April 2024 this year.

ADAVL is seeking a recall of a portion of the NCLT’s 27 February order that allowed IndusInd International Holdings to take over Reliance Capital for a bid worth ₹9,861 crore. The portion pertains to Reliance Capital's use of the ‘Reliance’ brand. Under the resolution plan, NCLT has said IIHL can use the brand for three years until it is implemented.

“To make a transition from Reliance Insurance, since there are various other financial services companies under Reliance Capital, millions of policyholders, and galore of permissions required, every single product requires IRDAI approval. This transition will have to be across the board, which will require time. So, the mark or the brand that will be used will only be for the ongoing transition that is taking place, Dhond added.

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Counsel for ADAVL argued that the implementation could go on for three years and doesn't mean they can be allowed to use the brand for free.

ADAVL petitioned before the court that the agreement ended on 1 April 2024, which is ten years from April. Following the expiry of the agreement, Reliance Capital’s right to use the brand has ceased. “There is no provision in law, whether under the IBC or otherwise by which NCLT can revive an agreement which has expired…,” said the counsel for ADAVL.

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