New Delhi [India], Nov 21: Delhi High Court has placed a restriction on the sale of assets belonging to Anil Ambani-led Reliance Capital which is reeling under mounting debt.
“The court has passed an order placing restrictions on any sale, disposal or creation of any encumbrance on any assets of the company, which inter-alia include the company’s 4.28 per cent shareholding in Reliance Nippon Life Asset Management Ltd, till December 16,” Reliance Capital informed stock exchanges in regulatory filings. The formal order of the high court is awaited. “The company will take all appropriate steps in the matter as legally advised, including to file an appeal against the said order to protect the interests of its lenders and other stakeholders,” it said late on Wednesday.
In late September, Ambani said the company suffered great collateral damage over the last six months due to a combination of factors, including the crisis in financial services sector, irrational action by auditors and rating agencies, and now slowdown of the Indian economy. As a part of the transformation process, Reliance Capital will no more be in any of the lending businesses.
The company had repaid over Rs 35,000 crore in debt over the past 15 months. It is close to repaying another Rs 15,000 crore by March 2020 despite zero funding from any bank, NBFC or financial institution, Reliance Capital says.