NCLT rejects second auction of Reliance Capital; creditors likely to appeal

CoC may move NCLAT to hold another auction to get higher value

The National Company Law Tribunal (NCLT) on Thursday termed the second auction planned by the committee of creditors (CoC) of Reliance Capital to sell the bankrupt company’s assets a “violation of law”.

The CoC is expected to move the National Company Law Appellate Tribunal (NCLAT) to appeal against the NCLT order. The lenders were planning another auction of Reliance Capital to maximise the value of the assets after the Hinduja group offered Rs 9,000 crore for the company after the first auction was concluded.

Ahmedabad-based Torrent, which had emerged as the highest bidder with an offer of Rs 8,640 crore, had moved