MUMBAI: Reserve Bank of India (RBI) has rejected a proposal by TCG Capital to acquire Religare Enterprises’ arms Religare Finvest and Religare Housing Development Finance. The central bank has also asked the company to find another suitor.
The sale was a part of the company’s debt resolution process and was expected to fetch the lenders Rs 330 crore. TCG is part of Purnendu Chatterjee’s The Chatterjee Group. Religare Enterprise was originally promoted by Malvinder and Shivinder Singh who subsequently lost control of firm. Several banks which were lenders to Religare had said the deal would be concluded before the end of the current fiscal.
“We would like to inform you that the RBI vide its letter dated March 20, 2020, has informed that the request seeking approval of the acquisition of RFL by TCG from REL cannot be acceded to,” Religare said in a statement to the exchange.
The company added that as the deadline for executing the sale has expired without the satisfaction of all the conditions stipulated in the share purchase agreement, the agreement is terminated.
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