The National Company Law Appellate Tribunal (NCLAT) has recently dismissed a petition from the state tax department seeking to claim outstanding tax dues from Anil Ambani’s beleaguered company, Reliance Communications (RCom). This ruling comes in light of assessments conducted after RCom was placed under bankruptcy proceedings. In a significant decision, a two-member bench of the NCLAT upheld the previous judgment of the Mumbai bench of the National Company Law Tribunal (NCLT), which had already rejected the state tax department’s claim for Rs 6.10 crore.
Background of the Case
The Corporate Insolvency Resolution Process (CIRP) for Reliance Communications commenced on June 22, 2019. Following this initiation, the state tax department filed two claims for tax dues. The initial claim amounted to Rs 94.97 lakh and was filed on July 24, 2019, while the second claim, which was contested in the recent ruling, sought Rs 6.10 crore and was filed on November 15, 2021. The second claim was founded on an assessment order issued on August 30, 2021. The NCLT had approved the first claim, which was submitted before the CIRP began, but chose not to sanction the more recent claim based on a later assessment order.
Investment Opportunities for Reliance Infrastructure
In more positive news regarding Anil Ambani’s ventures, Reliance Infrastructure Limited is set to receive a substantial investment totaling Rs 1,100 crore from its promoters, alongside an additional Rs 1,910 crore from two investment firms based in Mumbai. On September 19, the company’s board greenlit a plan to raise Rs 6,000 crore, an initiative seen as essential for its financial recovery.
Details of the Fundraising Plan
| Component | Amount (Rs Crore) |
|---|---|
| Fundraising Total | 6,000 |
| Preferential Allotment | 3,014 |
| Institutional Buyers | 3,000 |
Plan Breakdown
Of the Rs 3,014 crore to be raised through the preferential allotment, approximately 12.56 crore shares or convertible debentures are to be issued at a price of Rs 240 per share. This funding initiative will see Rs 1,104 crore of the amount invested by Risee Infinity Private Limited, a promoter company within the Reliance Infrastructure Group. The remainder of the funds is anticipated to be contributed by two other participants, Fortune Financial and Equities Services, in collaboration with Florintree Innovation LLP.
Conclusion
The NCLAT’s rejection of the state tax department’s claim against RCom signals a critical move in the ongoing bankruptcy proceedings, potentially allowing the company to focus on restructuring its debts and improving financial health. Meanwhile, the forthcoming investments in Reliance Infrastructure herald a positive shift, indicating increased confidence from promoters and stakeholders, which could pave the way for the company’s revival.
