The administrator of Reliance Capital (RCAP), a debt-ridden company, has accused IndusInd International Holdings Ltd (IIHL) of non-compliance with an NCLT order. The administrator’s affidavit claims IIHL deposited required funds into its own accounts and those of its promoters instead of designated escrow accounts. IIHL counters that it will transfer the funds once conditions for opening the escrow account are met. The NCLT had set a July 31, 2024, deadline for IIHL to comply with specific conditions, which IIHL allegedly failed to meet. The case continues with a hearing scheduled for next week.
5 Key Points:
- Non-Compliance Allegations: The administrator claims IIHL failed to deposit Rs 2,750 crore into designated escrow accounts as mandated by the NCLT.
- Disputed Funds Placement: IIHL reportedly placed the funds in its own and its promoters’ accounts instead of the specified escrow accounts.
- IIHL’s Defense: IIHL states it will transfer the funds once the escrow account, which has specific terms and conditions, is properly set up.
- NCLT Deadline: IIHL was required to deposit Rs 250 crore in a domestic escrow account and Rs 2,500 crore in an offshore escrow account by July 31, 2024, as per the NCLT order.
- Ongoing Legal Proceedings: A hearing on IIHL’s plea is scheduled for next week, with NCLT giving IIHL until August 10 to finalize the deal.
