Mumbai: The Hinduja-owned IndusInd International Holdings Ltd (IIHL) informed the Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday that it intends to rebrand the insolvent Reliance Capital under the 'IndusInd' brand following its takeover.
However, IIHL clarified that the use of the Reliance brand name would only be temporary to facilitate an orderly transition of business until the necessary regulatory permissions and clearances are obtained.
A spokesperson for IIHL, speaking off the record, stated, "We are not claiming ownership of the Reliance brand or name, but we intend to use it only for the purposes of an orderly transition of the business."
Venkatesh Dhond, senior counsel for the Hindujas, emphasized that the company has no intention of continuing business under the 'Reliance' brand and is eager to complete the transition swiftly to avoid any association with the brand. He argued that concerns raised by Anil Dhirubhai Ambani Ventures Ltd (ADAVL) that IIHL intends to operate under the Reliance brand are "factually misconceived."
The NCLT bench, led by Justice Virendrasingh G Bisht and Prabhat Kumar, was hearing a plea filed by ADAVL seeking to prevent IIHL from using the 'Reliance' brand. The bench has asked the counsel to submit written versions of their arguments by September 3, after which a decision will be made.
In February, the NCLT approved IIHL’s resolution plan for Reliance Capital, allowing the company to use the Reliance brand for three years to facilitate the resolution process.
IIHL recently completed a payment of Rs 9,641 crore to lenders, securing its acquisition of Reliance Capital, which had been placed under debt resolution in December 2021 after defaulting on loans totaling Rs 25,000 crore. IIHL emerged as the winning bidder in an auction to acquire Reliance Capital, with the lenders approving the bid in June 2023.
