IRDAI rejection raises more questions for Hinduja led IIHL on source of funds for RCAP acquisition

After IRDAI rejected Hinduja Group led IIHL's proposal to raise funds for the Reliance Capital acquisition by creating a pledge over the shares of Reliance General Insurance (RGIC) and Reliance Nippon Life Insurance (RNLIC), the Reliance Capital Administrator has written to the IIHL, raising questions on the source of funds and business plan.

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In a letter to IIHL, the Reliance Capital Administrator has asked the successful resolution applicant, IIHL to to share the final executed change in control application with the insurance companies, along with the source of funds and the business plan which do not contemplate the creation of pledge over the shares of RGIC and RNLIC, for onward submission to IRDAI.