SC Restores China Development Bank as Creditor in Reliance Infratel Case
ECONOMY & POLICY

SC Restores China Development Bank as Creditor in Reliance Infratel Case

The Supreme Court reinstated China Development Bank, Exim Bank of China, Asset Care and Reconstruction Enterprises, and others as financial creditors in the insolvency process of Reliance Infratel Ltd. Reliance Infratel, now acquired by Reliance Project & Property Management Services—a subsidiary of Reliance Jio Infocomm—has faced protracted legal challenges concerning creditor claims.

A bench led by Justice Abhay S Oka struck down the 2022 National Company Law Appellate Tribunal (NCLAT) order, which had declassified these four entities as financial creditors. The resolution professional for Reliance Infratel had previously admitted claims worth Rs 410.55 billion from 35 financial creditors, including Rs 109.52 billion from the four reinstated creditors.

The case stems from Reliance Project & Property Management’s Rs 37.20 billion bid to acquire Reliance Infratel’s tower and fibre assets under a resolution plan approved by the National Company Law Tribunal (NCLT) in 2020. However, Doha Bank challenged the classification of the four creditors as financial creditors, arguing that they were indirect creditors with claims based on hypothecated assets of Reliance Infratel used to secure loans for Reliance Communications.

In 2022, the NCLAT ruled in favor of Doha Bank, stating that the ""Deed of Hypothecation"" (DoH) was misconstrued as a ""Deed of Guarantee"" and did not establish the creditors as guarantors. The Supreme Court’s reversal now allows the claims of China Development Bank and others to be reinstated in the insolvency process.

The decision reinforces the position of financial creditors in insolvency proceedings and paves the way for a more structured resolution of Reliance Infratel’s debt.

The Supreme Court reinstated China Development Bank, Exim Bank of China, Asset Care and Reconstruction Enterprises, and others as financial creditors in the insolvency process of Reliance Infratel Ltd. Reliance Infratel, now acquired by Reliance Project & Property Management Services—a subsidiary of Reliance Jio Infocomm—has faced protracted legal challenges concerning creditor claims.A bench led by Justice Abhay S Oka struck down the 2022 National Company Law Appellate Tribunal (NCLAT) order, which had declassified these four entities as financial creditors. The resolution professional for Reliance Infratel had previously admitted claims worth Rs 410.55 billion from 35 financial creditors, including Rs 109.52 billion from the four reinstated creditors.The case stems from Reliance Project & Property Management’s Rs 37.20 billion bid to acquire Reliance Infratel’s tower and fibre assets under a resolution plan approved by the National Company Law Tribunal (NCLT) in 2020. However, Doha Bank challenged the classification of the four creditors as financial creditors, arguing that they were indirect creditors with claims based on hypothecated assets of Reliance Infratel used to secure loans for Reliance Communications.In 2022, the NCLAT ruled in favor of Doha Bank, stating that the Deed of Hypothecation (DoH) was misconstrued as a Deed of Guarantee and did not establish the creditors as guarantors. The Supreme Court’s reversal now allows the claims of China Development Bank and others to be reinstated in the insolvency process.The decision reinforces the position of financial creditors in insolvency proceedings and paves the way for a more structured resolution of Reliance Infratel’s debt.

Next Story
Infrastructure Transport

Gurugram’s Key Corridor Set for Expansion

The National Highways Authority of India (NHAI) is set to develop a six-lane surface road and a flyover along the high-traffic stretch between Hero Honda Chowk and Umang Bhardwaj Chowk in Gurugram. The project, estimated at Rs 2.1 billion, aims to decongest one of the city's busiest corridors. The Gurugram Metropolitan Development Authority (GMDA), overseeing the project, has already funded utility relocations. Authorities are now finalizing cost estimates for shifting electricity, water, and sewage lines, with relocation work expected to take six months. Initially planned in 2021, the 3.2-k..

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train: Major Progress in Maharashtra

The Mumbai-Ahmedabad Bullet Train corridor is witnessing rapid infrastructure development in Maharashtra, with significant progress reported on the 135.45 km elevated section from Shilphata to Zaroli. Key Infrastructure Highlights This segment, the second-largest in the project after the 237 km stretch in Gujarat, includes: Viaducts & Bridges: 124 km of elevated structures Stations: Thane, Virar, Boisar Tunnels: 7 mountain tunnels Major River Bridges: Ulhas, Vaitarna, Jagani Steel Bridges & Crossings: 36 structures, including 12 steel bridges Construction Updates Station Work: Foundat..

Next Story
Real Estate

Omaxe Group Unveils BeTogether to Drive Urban Development

Omaxe Group has launched BeTogether, a new real estate brand focused on transforming urban infrastructure through joint ventures and public-private partnerships (PPP). The initiative aims to address infrastructure gaps, drive socio-economic growth, and create vibrant urban centers across India. The brand’s current projects involve an investment exceeding Rs 28 billion, with an estimated revenue potential of over Rs 50 billion in the next three to five years. Led by Rohtas Goel, non-executive chairman, along with Mohit Goel, MD and founder of BeTogether, and Jatin Goel, ED of Omaxe Group and..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000