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

Piramal Capital and Housing Finance (PCHFL) has launched bankruptcy proceedings against Anil Ambani-controlled Reliance Power and its subsidiary Reliance Natural Resources (RNRL), after defaulting on a loan of Rs 526 crore.

RNRL, which merged with Reliance Power in 2010, had obtained the loan from Dewan Housing Finance Corporation (DHFL). The Piramal Group, controlled by billionaire Ajay Piramal, had acquired DHFL in 2021 for a total consideration of Rs 34,250 crore and then merged with PCHFL.

PCHFL has moved the Mumbai bank of the National Company Law Tribunal under Section 7 (Initiation of insolvency proceedings against the business debtor by a financial creditor) of the Insolvency and Bankruptcy Code (IBC), according to sources close to the development.

When contacted by a Reliance Power spokesperson, a PCHFL spokesperson declined, while a PCHFL spokesperson was not immediately available for comment.

According to the Reliance Power website, the company has nearly 6,000 MW of operational power generation assets, including the 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh.

The company’s projects under development include three coal-fired projects, one gas-fired project and twelve hydropower projects in Arunachal Pradesh, Himachal Pradesh and Uttarakhand.

A number of companies of the Anil Ambani group, including Reliance Infratel (the tower arm of Reliance Communications), Reliance Telecom, Reliance Naval and Reliance Capital are currently under insolvency proceedings.

By September 2021, PCHFL had completed its acquisition of beleaguered DHFL, after which it now has access to more than 1 million customers in 24 states and a network of 301 locations.

DHFL had gone bankrupt after it owed more than Rs 90,000 crore to various lenders including banks, mutual funds and individual investors. By November 2019, the Reserve Bank of India had referred the mortgage lender to IBC, and later in January 2021, 94% of DHFL’s creditors voted in favor of a settlement plan submitted by Piramal Group.

This post Piramal Capital starts bankruptcy proceedings against Reliance Power

was original published at “https://www.financialexpress.com/industry/piramal-capital-initiates-bankruptcy-proceedings-against-reliance-power/2467288/”