With this approval, all regulatory clearances required to finalise the transaction are now in place, said sources.
IIHL had already secured approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and stock and commodity exchanges earlier this year.
IIHL did not respond to queries from ET.
IIHL emerged as the successful resolution applicant in April 2023 for acquiring the troubled financial services firm under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC). The company won the bid at ₹9,650 crore in April 2023.
The initial deadline to complete Reliance Capital’s insolvency proceedings and make payments to lenders was May 27, 2024, but IIHL sought an extension from the National Company Law Tribunal (NCLT), citing delays in obtaining DPIIT approval for foreign investment. IIHL’s application attributed the delay to unforeseen developments in the approval process. DPIIT approval was crucial due to IIHL’s shareholder structure, which includes 600 shareholders from regions like the UAE, Singapore, Hong Kong, and Mauritius. Of these, 39 shareholders are from Hong Kong, a region classified as a land-border country under Press Note 3 (PN3) due to its special administrative ties with China.The DPIIT approval was particularly critical as the Hinduja Group must close the transaction by November 30, a deadline that was later extended to January 31, 2025. Failure to meet the deadline would require the group to return ₹3,000 crore raised from high-net-worth individuals (HNIs), ultra-HNIs, and family offices for the deal. The resolution plan will be funded through ₹7,300 crore in borrowings and ₹2,750 crore in equity.
