Reliance Home Finance has defaulted on loan repayment of Rs 40.08 crore in February. The company has cash on hand of approximately Rs 700 crore in the form of investment in liquid mutual fund. The delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets, pursuant to order dated November 20, 2019 passed by the Delhi High Court.
As per an earlier agreement, the lenders of the company have entered into an Inter-Creditor Agreement for arriving at the debt resolution plan in accordance with the circular issued by the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets.
Reliance Home Finance is engaged in providing housing finance. It provides housing loans, home improvement loan, home extension loan and reliance property solutions. It offers home loans to individuals and companies. It operates as a subsidiary of Reliance Capital.
