One of the bidders for the Anil Ambani-promoted Reliance Capital, Torrent Investments has offered ₹8,640 crore to acquire the firm through the insolvency process.
Torrent Investments approached the tribunal earlier this week seeking a stay on the Committee of Creditors' voting to hold a second round of 'Challenge Mechanism' or e-auction for the bidders.
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Represented by Mukul Rohatgi, Torrent Investments told the Mumbai bench of NCLT that their bid of ₹8,640 crore was above the threshold and the matter ended there.
However, on January 7, the Committee of Creditors (CoC) informed that they want to start a fresh round of auction, he stated.
"The extension of 'Challenge Mechanism' is not permissible," Rohatgi added.
Also representing Torrent Investments, Darius Khambata stated that this whole process is unfair and the ₹8,640 crore bid was in compliance with the 'Challenge Mechanism'.
After hearing Torrent Investments' plea, the tribunal comprising Pradeep Narhari Deshmukh and Shyam Babu Gautam asked the CoC and the administrator to file a reply by Monday (January 16).
Under the first 'Challenge Mechanism', the threshold bids amounted to ₹6,500 crore, while the highest net present value (NPV) offered by applicants was ₹7,210 crore.
By the time of the second round, the threshold was ₹7,500 crore, and the highest NPV was ₹7,620 crore.
In the third round, the threshold was ₹8,500 crore, while the highest NPV was ₹8,550 crore.
But by the end of the fourth round, the threshold, which was ₹9,000 crore received the highest NPV of ₹8,640 crore.
Reliance Capital has a consolidated debt of about ₹40,000 crore.
The Reserve Bank (RBI) had applied to initiate Corporate Insolvency Resolution Process (CIRP) against the Reliance Group company at the NCLT Mumbai. RBI-appointed Nageswara Rao Y is the administrator of Reliance Capital.
With PTI inputs.
