Chinese banks have written to Finance Minister Nirmala Sitharaman on the delays in the implementation of the Resolution Plan for Reliance Infratel Limited.
China Development Bank, Export Import Bank of China, Shubh Holdings Pte. Ltd. and SC Lowy Asset Management have written to the finance minister and IBBI Chairman in their respective capacities as financial creditors of Reliance Infratel Limited (RITL).
Collectively, these banks hold an aggregate financial debt of Rs 13,483 crore out of the total financial debt of RITL of Rs 41,055 crore.
“We wish to bring to your attention a deeply concerning roadblock in the implementation of the resolution plan for RITL by the successful resolution applicant – Reliance Projects & Property Management Services Limited (RPPMSL) (formerly known as Reliance Digital Platform & Project Services Limited), an affiliate of Reliance Jio Infocomm Limited (RJio),” the letter said.
“Given this roadblock and the instances of successful resolution applicants reneging on resolution plans, we further request the MCA and the IBBI to consider instituting appropriate legislative amendments to the Code in order to disincentivise successful resolution applicants from withdrawing or modifying resolution plans (once submitted as part of the CIRP) or delaying or withholding the implementation of National Company Law Tribunal (NCLT)-approved resolution plans,” the banks said.
The banks have said that in the present situation, the NCLT has already approved the RPPMSL Resolution Plan. Considering this, RPPMSL is not permitted to modify or withdraw the RPPMSL Resolution Plan in any manner and for any reason whatsoever (including, on account of the Forensic Audit Report).
Also, given the RPPMSL Resolution Plan will result in a change in the management or control of RITL, the risk (if any) of RPPMSL being liable for offences committed by RITL prior to the commencement of the CIRP is non-existent.
Accordingly, RPPMSL should be required to implement the RPPMSL Resolution Plan on an immediate basis. This will not only uphold the sanctity of the CIRP as envisaged under the Code but will also ensure speedier recovery for creditors who have been awaiting the resolution of RITL for the last two years.
The banks have requested the MCA and the IBBI to intervene in the RPPMSL Application on an urgent basis and to request the NCLT to direct the implementation of the RPPMSL Resolution Plan forthwith.
“As RITL’s financial creditors and stakeholders who have been awaiting the resolution of the RITL since 2018, we request your intervention in the RITL CIRP (where there is a clear NCLT approved resolution plan) on an urgent basis,” the banks said.