Bidders’ woes: RCap lenders to meet today

NEW DELHI: Lenders of debtridden Reliance Capital (RCap) will meet on Monday to resolve concerns raised by bidders ahead of the second round of auction scheduled on April 26.

Both bidders, Torrent Investment and IndusInd International Holdings (IIHL) of Hinduja Group, have expressed multiple reservations on the proposed auction and its terms.

According to sources, both the bidders have made it clear to the committee of creditors (CoC) that unless the issues raised by them are resolved to their satisfaction, they are unlikely to participate in the second round of auction. Both bidders want finality, certainty, transparency, no negotiation in value or on terms, after the second round of auction is over, they said. The two largest lenders of Reliance Capital — EPFO and LIC — are against giving any such undertaking in advance.

The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.