RelianceARC moves HC over RBI circular

Mumbai: The Reliance Asset Reconstruction Company (RARC), a subsidiary of Reliance Capital Ltd, has challenged the Reserve Bank of India’s (RBI) Master Circular on the Swiss Challenge Mechanism as being discriminatory, unjust and arbitrary. Reliance Capital has recently been acquired by the Hinduja Group company, IIHL through NCLT. In a writ petition filed before the Bombay High Court, the Reliance ARC has stated that clause 85 of the RBI’s Master Direction (Transfer of Loan Exposure) accords unlimited rights to the Anchor Bidder to match any bid in the Swiss Challenge process, which discourages the competition from the other prospective bidders and defeats the principle of maximization of value for the banks and lenders.