Reliance Capital borrowed against its own group until the RBI seized the board

Reliance Capital was the financial-services arm of Anil Ambani's Reliance Group, spanning insurance, asset management and lending, and at its peak it was one of India's largest diversified NBFCs. Years of aggressive, leveraged expansion — including loans that flowed toward other companies in the same group — built up liabilities that outran the cash the business could actually generate.

The strain surfaced as payment defaults to creditors. On 29 November 2021 the Reserve Bank of India superseded Reliance Capital's board, citing those defaults and governance failures the board had not addressed, and appointed an administrator to run the company. It was only the second time the RBI had ever taken this step against a large financial company, and it moved straight to filing for insolvency at the National Company Law Tribunal rather than waiting for a restructuring plan from the existing management.

The insolvency process ran for more than two years. Creditors ultimately admitted claims of roughly ₹26,087 crore against the company. Hinduja Group's IndusInd International Holdings won the bidding process with a resolution plan worth about ₹9,650–9,661 crore, and the NCLT approved it in February 2024; the deal closed in April 2024.

The payout left secured financial creditors recovering about 43% of their claims, unsecured creditors about 4%, and related-party creditors about 39% — a blended recovery of roughly 37%, meaning creditors absorbed a combined haircut of about 63% on the debt Reliance Capital had built up.