The deadline for submission of bids for the debt-ridden () company’s most valuable entity ends on Monday amid investor concerns over the company’s most valuable entity. Reliance General Insurance Company, Trusteeship Services Ltd, acting in its capacity as a debenture trustee on behalf of Credit Suisse, implemented Capital’s pledge of 100 per cent stake in Reliance General in November 2019 and transferred the shares to its account.

The administrator wants to include Reliance General as part of RCL’s insolvency process, but the IDBI trustee has refused to issue shares of the general insurance firm for resolution process under the Insolvency and Bankruptcy Code (IBC), sources said. That said, it seems to have hit a roadblock.

As a result, investors are worried about submitting bids in the absence of clarity on Reliance General shares, sources said.

The Committee of Creditors (CoC) had extended the bid submission deadline five times in the past, leaving only 4-5 interested entities for resolution to Piramal, Torrent and RCL.

Due to poor response, the CoC also waived the condition of paying Earnest Money Deposit (EMD) of Rs 75 crore on the date of first deposit.

With respect to Reliance Commercial Finance (RCF),

,RHF), sources said, they had gone through a different resolution process with infrastructure and infrastructure long before RCL was referred to the NCLT.

To address the concerns of the bidders with respect to RCF and RHF, the sources said, the CoC has proposed that the two entities be placed in a separate trust for resolution of Autumn Investment and Infrastructure.

According to sources, the CoC and Administrator are more willing to receive the bids under Option-1, i.e.

As a CIC (Core Investment Company).

Under Option-2, bidders can bid for 8 different businesses/groups of RCL which include General Insurance, Life Insurance, ARC, Securities Business etc.

reserve Bank of India ,reserve Bank of India) The board of RCL was superseded on November 29 last year in view of payment defaults and serious governance issues.

RBI appointed Nageswara Rao Y as Administrator in respect of Corporate Insolvency Resolution Process (CIRP) of the company.

It is the third largest non-banking financial company (NBFC) against which the central bank has recently initiated bankruptcy proceedings under the IBC. the other two were Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).

RBI subsequently filed an application in the Mumbai Bench of the National Company Law Tribunal (NCLT) to initiate CIRP against the company.

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