Earlier, Reliance Capital was in talks with Carlyle, Brookfield and the Piramal group
to sell a stake in the home finance business.
There were also reports that Reliance Home Finance
signed an inter-creditor agreement with lenders and was looking to bring in a strategic partner to pare its debt.
Reliance Capital had deferred its FY19 March quarter (Q4) results after Reliance Home Finance
and Reliance Commercial Finance named new statutory auditors and said it would take some time to consolidate the subsidiaries’ financials with those of the holding company.
Price Waterhouse & Co last month resigned as statutory auditors of both Reliance Capital and Reliance Home Finance, citing unsatisfactory response to “certain observations” made by it as part of the ongoing audit for 2018-19.
The board of Reliance Capital (RCap), however, denied all violations raised by erstwhile auditor PricewaterhouseCoopers (PwC) in its letter to the Ministry of Corporate Affairs (MCA).
“The company is planning to take legal action against PwC after an independent investigation conducted by top law firms revealed there was no diversion of funds as alleged by PwC,” a source close to the company said.