On Friday, IndusInd Bank promoter Hinduja Group tried to revise its bid for debt-laden Reliance Capital to Rs 9,500 crore, with an upfront cash outlay of Rs 8,800 crore, media reports said.

According to media reports, the group bid Rs 8,110 crore at the auction held on December 21. Earlier this week, Ahmedabad-based Torrent Group emerged as the highest bidder for Anil Ambani Group’s NBFC entity for Rs 8,640 crore. However, the media reports said Hinduja’s attempt to change his bid after the e-auction is not allowed under the challenge mechanism.

This is the first re-auction under the Insolvency and Bankruptcy Code (IBC). One of the main concerns expressed at the CoC meeting on Friday was that any bidder would be allowed to participate in the electronic auction, and the whole process would be mired in a legal quagmire.

In a regulatory filing, Reliance Capital said that during the meeting, the management assessed the current status and way forward of the Committee of Creditors (CoC) against the stated activities or milestones following the code and the going concern of the company. Lenders will meet on December 26 to review the settlement process, and review bids received, according to media reports.

Lenders have until January 31, 2023, to complete the resolution process with Reliance Capital, as ordered by the National Company Law Tribunal (NCLT). The RBI’s decision to invoke special powers under Section 227 of the IBC to settle Reliance Capital made media coverage a massive success for the lender and the second successful settlement after DHFL.

The Reserve Bank of India (RBI) replaced Reliance Capital’s board on November 29 last year due to payment defaults and serious governance issues. The Reserve Bank of India has appointed Nageswara Rao Y as the company’s Corporate Insolvency Resolution Procedure (CIRP) administrator.

Reliance Capital is the third large non-banking financial company (NBFC) initiated by the central bank under the IBC in insolvency proceedings. The other two are Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

The RBI subsequently applied to the Mumbai court of the National Company Law Tribunal (NCLT) to initiate CIRP against the company.

In February, RBI-appointed administrators invited expressions of interest for the sale of Reliance Capital.