MUMBAI: In a major setback to Reliance Capital, the National Company Law Tribunal (NCLT) on Thursday allowed Torrent Investments’ plea challenging bankers’ decision to hold a fresh round of auctions for the takeover of Anil Ambani-promoted company and said the challenge mechanism for financial bids has already concluded.
Reliance Capital is expected to appeal against the order in the National Company Law Appellate Tribunal (NCLAT). As per the order, the extended challenge mechanism proposed by the Committee of Creditors was not in compliance with IBC regulations.
The tribunal, led by Justice Shyam Babu Gautam and Justice Pradeep Narhari Deshmukh, in its order said the bench allows Torrent Investment’s application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of the applicant at `8,640 crore being the highest.
“It is hereby declared that issuance of process note for extended challenge mechanism is thus in violation of Regulation 39 (1A) of the CIRP Regulations,” the order added. Torrent Investments had filed a plea on January 9, seeking the tribunal to quash the lenders’ plans to hold a fresh auction for the takeover of Reliance Capital. Torrent Investment was the highest bidder offering `8,640 crore in the last round of ‘challenge mechanism’.