Reliance Asset Reconstruction Company (ARC), a subsidiary of Reliance Capital, has challenged the method of Swiss Challenge bidding being held by SBI Caps for the sale of debt of Vidarbha Industries Power Ltd (VIPL).
The company has also challenged the Reserve Bank of India’s Master Circular on the Swiss Challenge Mechanism as being discriminatory and arbitrary as it gives unjust and unfair advantage to the anchor bidder, sources said.
In a writ petition filed before the Bombay High Court, the Reliance ARC has stated that clause 85 of the RBI’s Master Direction (Transfer of Loan Exposure) accords unlimited rights to the anchor bidder to match any bid from the challenger bidders in the Swiss Challenge process,
