IDBI Trusteeship Services has alleged that the minutes of Reliance Capital Ltd’s Committee of Creditors (CoC) meeting do not accurately reflect the discussions that took place at the meeting.

Discussions focus on the 11 ^e CoC meeting held June 16-12 ^e meeting on July 1, the company said in a letter to Reliance Capital’s administrator earlier this month.

CoC minutes

The claim relates to “certain discussions that allegedly took place” with the Credit Suisse branch in Mumbai during the June 16 meeting and a particular item on the agenda of the July 1 meeting, according to the letter seen by Activity area.

“It is specified that the minutes of the 11 ^e CoC meeting do not accurately reflect the discussions held during the said 11 ^e CoC meeting. Please inform us of the basis of the recording of the alleged discussions, as recorded in the minutes of the 11 ^e CoC meeting,” the IDBI administrator said. The company added that it also emailed Reliance Capital pointing out the inaccuracies in the July 1 meeting minutes, but received no response or revision.

IDBI Trustee has now asked Reliance Capital to share video recordings of the meeting, consider its amendments and release revised minutes, according to the letter.

Resolution blocking

The allegation comes as IDBI Trustee and Reliance Capital are at an impasse over the pledged shares of Reliance General Insurance Company – a key asset for Reliance Capital’s resolution.

Reliance Home Finance had issued non-convertible debentures which it did not redeem. As part of the restructuring exercise in 2019, Reliance Capital pledged its entire stake in Reliance General Insurance in favor of the debenture trustee IDBI Trusteeship, which was later invoked.

After the initiation of insolvency proceedings against Reliance Capital, Administrator Nageshwara Rao had approached the NCLT to order IDBI Trusteeship to release the shares of Reliance General Insurance, so that they could be included in the assets available for resolution. IDBI Trusteeship refused to do so on the grounds that it is only the depositary of the shares and does not have the power to deliver them.

At Monday’s NCLT hearing, IDBI Trustee argued that waiving shares of Reliance General Insurance would be tantamount to waiving security for a secured debt, according to reports. The case is then due to be heard on August 26.

Meanwhile, the deadline for submitting resolution offers for Reliance Capital has been extended for the fifth time until August 28.

Published on

August 24, 2022