CoC of Reliance Capital decides to hold a second auction on April 4

The committee of creditors (CoC) of Reliance Capital (RCap) has decided to hold a second auction  on April 4 to sell the bankrupt company’s assets. 

The decision to hold a second auction was decided on Monday in a formal meeting of the CoC. Both Torrent, the highest bidder in the first round, and the Hinduja group have shown a lukewarm response to the lenders in an informal meeting held on Friday. 

Lenders say they would hold the second auction to maximise the value of the assets but bidders said the company’s life insurance venture had lost value after the Union Budget increased tax on high-value insurance schemes.