Connect with us
Friday,24-March-2023

Business

Reliance Capital bidders flag off multiple legal issues involving Rs 20,000 crore liability

Published

on

 As the deadline for the submission of binding bids approaches, the bidders of Reliance Capital, including Hinduja, Torrent, Zurich, and Piramal have flagged off various legal issues to the lenders and Administrator, involving Reliance Capital and its subsidiaries.

These legal issues involve a cumulative liability of Rs 22,000 crore, and they need quick resolution for the successful closure of RCAP’s resolution plan.

According to sources, the bidders are likely to make a condition precedent of these issues to any payment to the lenders.

The two big issues flagged off by the bidders are the impending resolution of Reliance Home Finance Ltd (RHFL) and the legal battle between the Administrator and IDBI Trusteeship for the control of Reliance General Insurance’s shares, which is pending in the NCLT.

Authum Investment and Infrastructure Ltd had been selected as the successful bidder for RHFL in June 2021, but the resolution process has not yet been completed due to various litigation involving the debenture holders. The total debt of RHFL is Rs 11,500 crore.

As far as Reliance General Insurance is concerned, the Independent actuarial Tower Watson has valued this business at Rs 9,500 crore.

Apart from these, the two other legal cases flagged off by the bidders are Axis Bank’s claim of Rs 150 crore against Reliance Capital, which the bank has lost in the NCLT, and a case involving Administrator and IndusInd Bank, involving arbitration of Nippon Asset Management shares. The total liability in this matter is Rs 650 crore.

The last date for submitting binding bids is November 28.

The quick resolution of these legal matters is a challenge for the Administrator for the successful closure of the RCAP resolution plan.

Reliance Capital had received 14 non-binding bids for its multiple businesses. Six companies had submitted bids for the entire company, while the rest of the bidders had submitted bids for its multiple subsidiaries.

Torrent, IndusInd, Oaktree, Cosmea Financial, Authum Investment, and B Right Real Estate have submitted bids in the range of Rs 4,000 crore to Rs 4,500 crore for Reliance Capital’s entire assets.

For Reliance General Insurance business, Piramal Finance has bid Rs 3,600 crore, while Zurich Insurance’s bid is Rs 3,700 crore.

The third bidder, Advent, has bid Rs 7,000 crore for Reliance General Insurance.

Jindal Steel and Power and UVARC have submitted bids for Reliance Capital’s ARC business.

For other assorted assets of Reliance Capital, 3 bidders — Choice Equity, Global Fincap, and Grand Bhawan — have submitted the bids.

RCAP’s life insurance business, RNLIC, had not received any bid, but later on Aditya Birla Capital and Nippon Life Insurance, which is already holding 49 per cent equity in RNLIC, have evinced interest in acquiring RCAP’s 51 per cent stake in this business.

At the beginning of the resolution process of Reliance Capital over 54 companies had submitted Expression of Interest (EOI) for its various assets, out of which only 14 are now in the fray.

Crime

Bihar: 7-yr-old boy dies after brutal assault by teacher

Published

on

By

A seven-year-old boy died in Bihar’s Saharsa district on Friday after an alleged brutal assault by his teacher.

The victim, Aditya Kumar, was an LKG student at a private school in a village under the Sadar police station. He had been living in a hostel since the last 10 days.

His parents are residents of the adjoining Madhepura district.

According to the police, the school administration informed Aditya’s parents that he became unconscious and was admitted to a private hospital.

By the time his parents arrived, the victim died.

“We sent our child to the school cum hostel in Saharsa district on March 14. We received a phone call on Friday that Aditya became unconscious and was admitted to a private hospital. When we reached the hospital, he was already dead,” said Prakash Yadav, Aditya’s father.

“We have sent the body for post-mortem to ascertain the actual cause of death. The family members alleged that he died due to the physical assault. We are also trying to arrest the owner of the school. He is absconding. We have lodged an FIR and efforts are on to nab him,” said Brajesh Chauhan, Sub-inspector of Sadar police station.

Continue Reading

National

Supreme Court: Being a member of unlawful association is an offence under UAPA.

Published

on

By

The Supreme Court on Friday held that mere membership of unlawful association is sufficient to constitute an offence under UAPA. The apex court upheld the Section 10 (a) (i) of the Unlawful Activities Prevent Act.The apex court, according to Bar and Bench report, also said all High Court decisions to the contrary are overruled. A bench of Justices MR Shah, CT Ravikumar and Sanjay Karol pronounced the verdict.

While allowing petitions of the Union government and the Assam government seeking review of the apex court’s 2011 verdicts on membership of banned outfits, the court said the Union government was required to be heard when a provision enacted by Parliament is read down.

The top court said the 2011 verdicts were passed while relying on American court decisions which cannot be done without considering the condition prevailing in India.In India right to freedom of speech and expressions is not absolute and is subject to reasonable restriction. However, decisions of the American court can be guiding light”, the bench said.

On February 9, the top court while reserving its verdict on batch of review pleas had noted that the Union of India was not heard by its two-judge benches when the 2011 verdict was passed reading down section 3 (5) of Terrorist and Disruptive Activities (Prevention) Act, 1987 (now repealed).

The top court on February 3, 2011, had acquitted suspected ULFA member Arup Bhuyan, who was held guilty by a TADA court on the basis of his alleged confessional statement before the Superintendent of Police, and said mere membership of a banned organisation will not make a person a criminal unless he resorts to violence or incites people to violence or creates public disorder by violence or incitement to violence.

Similar views were taken by the apex court in two other verdicts of 2011 in Indra Das versus State of Assam and state of Kerala versus Raneef, where the bench relied upon the three US Supreme Court decisions which have rejected the doctrine of ‘guilt by association’.

Continue Reading

National

BJP questions Congress’ march in support of Rahul Gandhi.

Published

on

By

The BJP on Friday questioned the Congress’ march in support of its leader Rahul Gandhi after he was convicted in a criminal defamation case.

The Congress MP was sentenced to two years imprisonment along with a fine of Rs 15,000 by a Surat court on Thursday for his “Modi surname” remark in April 2019.

Questioning the Congress’ stance, Union Minister and BJP leader Bhupender Yadav said, Rahul has insulted the entire OBC community.

“I want to know why they want to take out this march. Is the party taking out this march because he has the right to humiliate the OBC community,” he wondered.

“He abused a ‘surname’… If there is a judicial decision, should a march be taken out against it… Will it not be an insult to the country’s judiciary,” the Union Minister asked.

“Rahul is a habitual liar and on a constant mode to defame India. Moreover, his words — reflecting his psychology of disrespect towards the OBCs — is very much shameful,” he said.

On Parliament logjam, Yadav said: “The irresponsible behaviour of the opposition, its actions resulting in non-functioning of the Parliament, disrespecting parliament on a foreign land reflect the anti-democratic stance of the Congress.”

On the other hand, BJP chief J. P. Nadda said, Rahul ignored the option of repeatedly explaining and apologising to the society and the court, and hurt the sentiments of the OBC society.

The BJP chief alleged that even after being sentenced, Rahul and the Congress, due to their arrogance, are constantly adamant on their statements and are hurting the sentiments of the OBC community.

During a rally in 2019, Rahul had said: “Why do all these thieves have Modi as their surname? Nirav Modi, Lalit Modi, Narendra Modi.”

Modi surname belongs to mostly people from the oil presser caste who are part of the OBC.

Continue Reading

Trending