Mumbai, Nov 16 (IANS): Piramal Capital has withdrawn the insolvency proceedings against Reliance Power Ltd.

Reliance Power, in a stock exchange disclosure, has informed that the Piramal Capital and Housing Finance has withdrawn the application made against Reliance Power Ltd. under section 7 of the Insolvency and Bankruptcy Code 2016.

This follows an out of court settlement between both the companies Rs 526 crores loan default by Reliance Power and it's subsidiary, Reliance Natural Resources Ltd. (RNRL).

RNRL had in 2010 merged with Reliance Power.

RNRL had defaulted on a loan of ?526 crore, obtained from the erstwhile Dewan Housing Finance Corporation Ltd (DHFL).

The Piramal Group had acquired the DHFL in 2021 and merged with Piramal Capital and Housing.

Post that, Piramal Capital, in March this year, initiated bankruptcy proceedings against Reliance Power under section 7 of the IBC Code 2016, in NCLT Mumbai, to recover the dues.

In July, during a hearing on the Piramal Capital's application, both the companies had informed the NCLT that they were engaged in talks to settle the matter, by consent.