NCLT approves Sagacious Capital’s ₹110 crore plan for Reliance Innoventures; creditors to receive fraction of claims

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Sagacious Capital Private Limited’s resolution plan for Reliance Innoventures Private Limited, marking the end of a protracted insolvency process.

The bench, comprising Member (Judicial) Mohan Prasad Tiwari and Member (Technical) Charanjeet Singh Gulati, sanctioned the plan in an order pronounced on Tuesday. The approval concludes a process where creditors, holding total admitted claims of approximately ₹4,236.61 crores, will receive a combined payout of ₹110.10 crores—a recovery of about 2.6% of the total admitted debt.

Breakdown of debt and payout:

According to the tribunal’s order, the admitted claims verified during the Corporate Insolvency Resolution Process (CIRP) and their respective payouts under the approved plan are as follows:

1. Secured Financial Creditors: Admitted claims of ₹1,410.14 crores. They will receive ₹101.58 crores, constituting a 7.20% recovery. The primary secured creditor is JC Flowers Asset Reconstruction.
2. Unsecured Financial Creditors: Admitted claims of ₹2,813.82 crores. They will receive ₹8.37 crores, a mere 0.30% recovery. This class includes claims from entities like HDFC Ltd. and Axis Trustee Services, largely stemming from corporate guarantees provided by Reliance Innoventures for other group companies.
3. Operational Creditors (for goods/services): Admitted claims of ₹12.63 crores. They will receive ₹0.13 crores, a 1.03% recovery.
4. Statutory Dues (Government): Admitted claims of ₹0.02 crores. These will be paid in full (100%).
5. CIRP Costs: Outstanding costs of ₹4.35 crores will be paid in full and in priority, either from the corporate debtor’s internal accruals or by the resolution applicant.

Plan Funding and Legacy Equity Extinguished

The total resolution plan amount of ₹110.10 crores will be infused by Sagacious Capital. As part of the capital restructuring, the entire existing share capital of Reliance Innoventures, worth ₹381.49 crores, will be extinguished. The company will then issue 100,000 new equity shares to Sagacious Capital, giving it complete ownership.

The tribunal’s approval underscores the binding nature of the resolution plan on all stakeholders and extinguishes all claims not specifically provided for within it. The order also clarifies that the resolution applicant will not be liable for any offences committed by the company prior to the insolvency commencement date.

This settlement brings finality to the insolvency of Reliance Innoventures, transferring its assets and operations to Sagacious Capital while providing a minimal but definitive recovery for its numerous creditors.

Reliance Innoventures Private Limited (RIPL) was the ultimate holding company of Reliance-Anil Dhirubhai Ambani Group (ADAG). It had strategic holdings in various listed operating group companies through intermediate holding companies. The company held the majority of the promoter shareholding in Reliance Capital Ltd, Reliance Power Ltd., Reliance Infrastructure Ltd. & Reliance Communications Limited among other Reliance ADAG Group Companies, directly and through subsidiaries. RIPL also used to sell wind power and EPC contracts for small projects.