RBI Approved Hinduja Group’s Director to join Reliance Capital’s Board amid Bankruptcy
The Reserve Bank of India (RBI) has approved the appointment for five representatives from the Hinduja Group to join the board of Reliance Capital, which is facing financial challenges, according to sources.
The approved directors are Amar Chintopanth, Shardchandra V Zaregaonkar, Moses Newling Harding John, Bhumika Batra, and Arun Tiwari. This approval from the RBI comes as part of the overall consent for the transfer of control of Reliance Capital Ltd to IIHL BFSI (India) Ltd, a wholly owned subsidiary of Hinduja Group’s IndusInd International Holdings Ltd (IIHL).
The RBI has approved Rs 10,000 crore resolution plan and the appointment of directors for Reliance Capital. As part of this approval, the RBI has specified that, following the change in control and management, the company must maintain a strict arm’s length distance in transactions with the Hinduja Group’s IndusInd Bank. Additionally, any changes in the shareholding of resolution applicants after implementing the plan will require prior approval from the RBI. The bank has also mandated the submission of the NCLT order approving IIHL’s resolution plan.
The approval from NCLT for IIHL’s resolution plan is pending, awaiting a decision from the Supreme Court on Torrent Investment’s plea against the second round of auctions held by Reliance Capital’s lenders.