IndusInd Highlights GST Liability in Reliance Capital’s Resolution Plan at NCLT
By: Admin
Date: August 30, 2024
Category: GST Recent News
Reading Time: 4 Min
IndusInd International Holdings, owned by Hinduja Group, raised concerns before the National Company Law Tribunal (NCLT) on Wednesday about a GST liability of ₹850 crore, which is complicating the implementation of Reliance Capital’s resolution plan. Representing IndusInd International Holdings, a senior counsel noted that they have secured seven approvals, including from RBI and SEBI, but the GST issue remains unresolved.
Following the tribunal’s directive on August 12, IndusInd held a joint meeting with the Committee of Creditors (CoC) to address various challenges. Despite these efforts, the GST liability continues to be a major obstacle. The counsel highlighted that the ₹850 crore liability is covered under the NCLT’s February 27 order, which waives any tax, including income tax and GST.
The tribunal, led by Justice Virendrasingh G Bisht and Justice Prabhat Kumar, has scheduled the next hearing for September 19. The counsel for the CoC emphasized that the resolution process cannot be indefinite, and aside from the required approvals, other issues should not hinder the plan’s implementation.
Earlier, on August 12, the NCLT urged the Reserve Bank and the Department of Industrial Policy and Promotion to expedite the necessary approvals for IndusInd International Holdings to proceed with Reliance Capital’s resolution. On February 27, 2024, the NCLT approved IIHL’s ₹9,650-crore resolution plan for Reliance Capital. This followed the Reserve Bank’s move in November 2021 to supersede the board of Reliance Capital due to governance issues and payment defaults by the Anil Dhirubhai Ambani Group company.
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