Shapoorji obtains HC stay, a barrier for Reliance Home Finance

03 Mar 2021 Editorial Team

A legal case filed by Shapoorji Pallonji Group against Reliance Home Finance Ltd (RHFL) comes as a hurdle in the way of the latter's debt resolution by lenders.

RHFL is at the final stages of the debt resolution process. However, as per sources, lenders cannot proceed with the resolution process due to a coercive stay obtained by the Shapoorji Pallonji Group from Delhi HC in November 2019, against RHFL to sell its assets could be a barrier to a speedy resolution.

According to the stay obtained by Shapoorji Pallonji Group, RHFL is prohibited from disposing off, alienating, encumbering either directly or indirectly, or otherwise part with the possession of any of its assets. This directly impacts the ongoing debt resolution of the company.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

The resolution process, being managed by Ernst & Young (EY) and BOB Capital Markets (BOB Caps), has got four binding bids to the lenders.

Out of these four bidders, Authum Investments and ACRE have been for all the company's assets. The other two bids, from Avenue-Arcil and Capri Global, are for buying only the company's retail assets.

Shapoorji Pallonji Group is a secured lender with just Rs 200 crore of exposure out of the total debt of Rs 11,200 crore, which is less than 1.8% of the total debt of RHFL.

Separately, the same group of banks is considering debt resolution under a one time restructuring (OTR) of the Shapoorji Pallonji group with over Rs 30,000 crore of debt.

In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of RHFL and Reliance Commercial Finance, both arms of Reliance Capital.

Image Source

Also read: SBI, Shapoorji sign MoU for faster home loan processing

A legal case filed by Shapoorji Pallonji Group against Reliance Home Finance Ltd (RHFL) comes as a hurdle in the way of the latter's debt resolution by lenders. RHFL is at the final stages of the debt resolution process. However, as per sources, lenders cannot proceed with the resolution process due to a coercive stay obtained by the Shapoorji Pallonji Group from Delhi HC in November 2019, against RHFL to sell its assets could be a barrier to a speedy resolution. According to the stay obtained by Shapoorji Pallonji Group, RHFL is prohibited from disposing off, alienating, encumbering either directly or indirectly, or otherwise part with the possession of any of its assets. This directly impacts the ongoing debt resolution of the company.4th Indian Cement Review Conference 202117-18 March Click for event info The resolution process, being managed by Ernst & Young (EY) and BOB Capital Markets (BOB Caps), has got four binding bids to the lenders. Out of these four bidders, Authum Investments and ACRE have been for all the company's assets. The other two bids, from Avenue-Arcil and Capri Global, are for buying only the company's retail assets. Shapoorji Pallonji Group is a secured lender with just Rs 200 crore of exposure out of the total debt of Rs 11,200 crore, which is less than 1.8% of the total debt of RHFL. Separately, the same group of banks is considering debt resolution under a one time restructuring (OTR) of the Shapoorji Pallonji group with over Rs 30,000 crore of debt. In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of RHFL and Reliance Commercial Finance, both arms of Reliance Capital. Image Source Also read: SBI, Shapoorji sign MoU for faster home loan processing

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..