Companies

Reliance Capital defaults on interest payments to HDFC, Axis Bank

Our Bureau Mumbai | Updated on August 29, 2020 Published on August 29, 2020

Anil Ambani

Reliance Capital has defaulted on interest payments totalling ₹5.42 crore to Housing Development Finance Corporation (HDFC) and Axis Bank.

In a regulatory filing, the company said it has defaulted on interest payment of ₹4.71 crore to HDFC and ₹71 lakh to Axis Bank.

It had borrowed ₹524 crore as principal from HDFC and ₹100.6 crore from Axis Bank.

“Delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets, pursuant to Order dated November 20, 2019 passed by the Delhi High Court…,” it said, adding that following the proceedings initiated by Vistra ITCL (India) Ltd, the Debts Recovery Tribunal through its order dated December 3, 2019 has also prohibited it from transferring, alienating, encumbering or otherwise parting with the possession of assets owned by the company.

“In view of the above the company is unable to proceed with its asset monetization resulting in delay in its debt servicing,” it said.

As on July 31, it had ₹673.76 crore total outstanding borrowings from banks and financial institutions.

Total financial indebtedness of Reliance Capital was ₹19,664.99 crore including short term and long-term debt as on July 31.

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Published on August 29, 2020
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