NCLT yet to receive notice from Piramal Capital under IBC: Reliance Power

Anil Ambani-owned Reliance Power (RPL) has clarified that the National Company Law Tribunal (NCLT) Mumbai has not received any notice from Piramal Capital and Housing Finance Ltd (PCHFL) which had reportedly filed bankruptcy proceedings against RPL and its subsidiary Reliance Natural Resources Ltd (RNRL) earlier this week. 

The company, in a regulatory filing on Saturday, informed that "an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, has been filed against the Company and its subsidiary Reliance Natural Resources Limited (RNRL) by Piramal Capital and Housing Finance Limited in relation to financial claim of Rs. 526.10 Cr due from RNRL."

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Reliance Power further stated that no notice in relation to the above has yet been received by NCLT. "This disclosure is being made as an abundant caution. The company is engaged in bilateral discussions to resolve the matter outside IBC and taking requisite steps," the company added in its filing.

RNRL, which was merged with Reliance Power in the year 2010, had obtained a loan from Dewan Housing Finance Corporation (DHFL). 

DHFL was later acquired by the Piramal Group, controlled by billionaire Ajay Piramal, for a total consideration of Rs 34,250 crore in 2021 and was then merged with PCHFL.

DHFL had gone bankrupt after it owed over Rs 90,000 crore to several lenders, comprising mutual funds, banks and individual investors. PCHFL has started recovery proceedings against many defaulters of DHFL.

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In January 2021, the Piramal Group passed a debt resolution plan whereby any recovery from loans under default will not go to the creditors but to Piramal. 

Several firms of Anil Ambani group, comprising Reliance Infratel, Reliance Capital, Reliance Naval, and Reliance Telecom are presently under the insolvency process.