Mumbai, Nov 18 (IANS): The Reserve Bank of India approved the resolution plan for debt-ridden Reliance Capital on Friday.

The move finally clears the path for Hinduja Group entity -- IndusInd International Holdings Ltd (IIHL) -- to acquire the company.

This is to inform you that the Administrator of Reliance Capital Limited is in receipt of "No objection" vide letter dated November 17, 2023, from the Reserve Bank of India, the company said in a regulatory filing.

After a protracted battle, IIHL had emerged as the highest bidder with an offer of Rs 9,650 crore to take over Reliance Capital in the second round of auction concluded this April.

The RBI on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company.

Reliance Capital is the third large non-banking financial company (NBFC) against which RBI had initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC). The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

The central bank subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the National Company Law Tribunal.