A few days before the deadline for submission of binding bids, LICCash-strapped principal loan secured by move to sell its Rs 3,400 crore Reliance Capital Limited ,rclto one Property Reconstruction Company (ARC) has troubled its lenders and bidders. Last date for submission of binding bid for Reliance Capital Ltd. (RCL) and its subsidiaries on 28 November.

Sources said LIC is conducting a Swiss challenge process to invite bids from asset reconstruction companies (ARCs) to sell its exposure in RCL, with potential bidders being asked to make better offers.

However, sources said, Asset Care and Reconstruction Enterprise will have the first right to match the counteroffer.

The last date for submission of bids is November 25, while the last date for submission of binding bids for RCL is November 28.

According to sources, the Committee of Creditors (CoC) of RCL is perplexed as to why LIC has initiated a parallel process to sell its debt so close to the deadline for submission of bids.

LIC is a member of CoC and it is in the process of finalizing transactions Sources said that three days before the deadline for binding bids, other members and bidders were harassed.

RCL had given two options to all the bidders. Under the first option, companies can bid for Reliance Capital Ltd, which comprises eight of its subsidiaries or clusters. another alternative Bidders were given freedom to bid for their subsidiaries individually or in combination.

Eight businesses of RCL are closed. it is included general InsuranceLife insurance, health insurance, securities business and asset reconstruction, among others.

reserve Bank of India (reserve Bank of India) superseded the board of RCL on November 29 last year payment lapses and serious governance issues.

The RBI appointed Nageswara Rao Y as the administrator in connection with the Corporate Insolvency Resolution Process (CIRP) of the firm.

Reliance Capital is the third largest non-banking financial company (NBFC) against which the central bank has taken initiative bankruptcy Proceedings under IBC

The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL). The RBI subsequently filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT) for initiation of CIRP against the company.

In February this year, the RBI-appointed administrator had sought expressions of interest for the sale of Reliance Capital.