RCap resolution case: NCLT asks Hindujas to deposit ₹2,750 crore in CoC designated escrow account

Mumbai: The National Company Law Tribunal on Thursday ordered Hinduja Group-owned IndusInd International Holdings Ltd (IIHL) to deposit ₹2,750 crores in a special escrow account as part of Reliance Capital's resolution plan.

The Hindujas agreed to provide the binding term sheet agreement to the monitoring committee, and hold a meeting today with all stakeholders.

A bench comprising Justices Virendrasingh G. Bisht and Prabhat Kumar was hearing a petition filed by the Hindujas seeking modification of the tribunal’s 23 July order and further time to implement the resolution plan. 

The order, while partly allowing an appeal by IIHL, directed it to implement the resolution plan by 10 August and deposit the equity component of ₹2,750 crore in an escrow account designated by the Committee of Creditors (CoC) by 31 July. 

Hindujas pleaded that if the NCLT does not consider the modification of its order, the administrator, the CoC and IIHL will face inexplicable challenges in implementing the resolution plan for Reliance Capital.

Abhishek Manu Singhvi, senior counsel appearing for Hindujas submitted a ‘compliance affidavit’ stating that it has deposited the entire equity component of ₹2,750 crores. However, this amount has been deposited in accounts of Ashok Hinduja Harsha Hinduja and Shom Hinduja.

Earlier, IIHL said that banks in Mauritius have asked for certain details to process the funds' remittances. 

Mauritius banks have sought KYC details of the ‘Vistra’ account, a designated entity of the CoC, a duly executed tripartite escrow agreement by all stakeholders, a copy of the resolution passed by IIHL’s Board of Directors and the end use of funds to be remitted.

The administrator argued that IIHL was seeking minor changes to the order and trying to shift the responsibility for implementing the plan onto them, which is not in accordance with the resolution plan.