NSE/BSE Codes: NSE: RELINFRA, BSE: 500390

Summary of Key Information:

Nature of Event / Disclosure:

Disclosure under Regulation 30 of SEBI Listing Regulations regarding admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against HK Toll Road Private Limited, a wholly owned subsidiary.

Involved Parties / Authorities:

  • Financial Creditor: Canara Bank Limited
  • Corporate Debtor: HK Toll Road Private Limited (Wholly owned subsidiary of Reliance Infrastructure Limited)
  • Adjudicating Authority: National Company Law Tribunal, Mumbai Bench-VI
  • Other Parties: National Highways Authority of India (NHAI), Consortium Lenders (Punjab National Bank, Union Bank of India, State Bank of India)
  • Interim Resolution Professional: Mr. Sanjay Kumar Mishra (IBBI/IPA-001/IP-P01047/2017-18/11730)

Date / Timeline of Event:

  • Date of Default: 31 December 2023
  • NPA Classification Date: 30 March 2024
  • Recall Notice Date: 18 April 2024
  • Petition Filing Date: 27 March 2025
  • NCLT Hearing Date: 11 June 2026
  • Order Date: 11 June 2026

Brief Description of Outcome / Dispute:

The Hon'ble NCLT Mumbai Bench admitted the Section 7 application filed by Canara Bank against HK Toll Road Private Limited for a default amount of ₹282.59 crore (₹234.22 crore principal + ₹48.36 crore interest as of 28 February 2025). The default occurred due to the termination of the Concession Agreement by NHAI on 22 January 2024, which disrupted toll revenue collections that were servicing the debt.

Impact of Outcome:

Financial Impact:

  • The admitted default amount is ₹282.59 crore as claimed by Canara Bank
  • Reliance Infrastructure's exposure of approximately ₹355 crore in HK Toll Road is already fully provided for in its books of accounts
  • Canara Bank directed to deposit ₹3,00,000 as initial CIRP cost with the IRP
  • Financial impact on Reliance Infrastructure is mitigated due to previous provisioning

Operational / Business / Strategic Impact:

  • Corporate Insolvency Resolution Process (CIRP) commenced against HK Toll Road
  • Moratorium declared under Section 14 of IBC prohibiting all legal proceedings against the corporate debtor
  • Management control vested with the Interim Resolution Professional
  • The toll road project operations remain suspended since NHAI termination in January 2024
  • The resolution process may affect the ongoing arbitration proceedings with NHAI

Other Implications:

  • Reputational impact on Reliance Infrastructure group due to subsidiary insolvency
  • Potential recovery through arbitration claims against NHAI (₹709.43 crore or ₹584.16 crore termination payment claims)
  • Toll collections of approximately ₹532 crore between January 2024-March 2026 currently with NHAI

Next Steps / Required Actions:

  • IRP to make public announcement and invite claims from creditors
  • IRP to constitute Committee of Creditors
  • IRP to take over management and assets of HK Toll Road
  • CIRP to be completed within 180 days (extendable to 330 days)
  • Monthly progress reports to be submitted by IRP to NCLT
  • Resolution plan to be approved by CoC and NCLT, or liquidation if resolution fails