The deadline for finishing Reliance Capital's resolution procedure has been extended by three months, from April 16 to July 16, by the Mumbai bench of the National Company Law Tribunal (NCLT). In order to maximise their recovery, lenders have decided to arrange another round of auction.

After lenders decided to hold the second round of the asset auction for Reliance Capital on April 26, an extension was required.

IndusInd International Holdings Ltd (IIHL), a subsidiary of the Hinduja Group, Torrent Investment, and Singapore-based Oaktree are a few of the bidders that have declared their participation in the second round.

The lenders needed extra time to resolve the difficulties brought up by the bidders, thus the second auction round was also postponed from April 11 to April 26.

The lenders needed extra time to resolve the difficulties brought up by the bidders, thus the second auction round was also postponed from April 11 to April 26. The lenders have requested Reliance Capital to make sure that the resolution plan complies with both the Request for Resolution Plan (RFRP) and the Insolvency and Bankruptcy Code (IBC).

According to sources, bidders seek assurance from the lenders that there won't be any further discussions after the second round is over. After the second round is over, they want the resolution procedure to be completed.

The settlement process's completion date has previously been postponed numerous times.

On November 29, 2021, the Reserve Bank of India replaced the Reliance Capital board due to payment failures and governance problems. In connection with the firm's Corporate Insolvency Resolution Process (CIRP), Nageswara Rao Y was chosen as the administrator.

After Srei Group NBFC and Dewan Housing Finance Corporation (DHFL), Reliance Capital is the third significant non-banking financial institution (NBFC) against which the central bank has commenced insolvency proceedings under IBC.

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