Anil Ambani's Reliance Capital has defaulted on interest payment on outstanding loans from Housing Development Finance Corporation (HDFC) and Axis Bank. The company informed the exchanges on 27 November that it has failed to pay interest of Rs 4.77 crore to HDFC and Rs 0.71 crore to Axis Bank, due up to 31 October, as it could not monetise its assets due to various legal barriers.
Reliance Capital's total debts amount to Rs 20,077 crore including accrued interest at the end of 31 October.
"The company is unable to proceed with asset monetization resulting in delay in debt servicing, due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues," the company said in its stock exchange filing.
Reliance Capital has borrowed term loans worth Rs 524 crore from HDFC for 6 months to 7 years at 10.6-13% annual interest and term loans of Rs 100.63 crore from Axis Bank for 3-7 years at 8.25% a year.