Torrent to move SC against NCLAT order allowing RCap's second auction

New Delhi, March 8 (IANS) The Torrent Group, a bidder of bankrupt firm Reliance Capital (RCap), has decided to move the Supreme Court challenging the National Company Law Appellate Tribunal's (NCLAT) order to hold a second round of auction for RCap assets.

According to the apex court website, the Torrent Group petition is not listed so far, however sources said that the matter is likely to be mentioned next week on reopening of the court after Holi break.

Earlier this month, the NCLAT order came on a petition filed by Vistra ITCL (India), which is one of the lenders of Reliance Capital, against NCLT order restricting further auction of the bankrupt firm.

Following the NCLAT order, the lenders' of RCap had decided to hold the second round of e-auction on March 20.

Torrent, after the first auction, was the highest bidder with a bid of Rs 8,640 crore for Reliance Capital. The CoC of Reliance Capital, opted for a second auction after Hinduja group made an offer of Rs 9,000 crore. Torrent challenged this before the Mumbai bench of NCLT (National Company Law Tribunal).

In February, NCLT held that the challenge mechanism for financial bids was concluded as on December 21, 2022, with the bid of Torrent Investments at Rs 8,640 crore being the highest. This order was challenged by the CoC of RCap in NCLAT.

Vistra ITCL (India), one of the lenders of Reliance Capital, had moved NCLAT challenging an order of NCLT which restricted further auction of the bankrupt firm.

RCap was sent for debt resolution in November 2021 after the company defaulted on loans worth Rs 24,000 crore.