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Lone Star rejects Rajiv Rattan's proposal to wind up RattanIndia Finance: report

Economic Times  

PE investor Lone Star Funds (LSF) has "rejected" promoter Rajiv Rattan's proposal to wind up RattanIndia Finance calling it a ploy to shift attention from his alleged fraudulent conduct. In May 2021, LSF had alleged that Rattan had siphoned funds from the NBFC company. Rattan, also co-founder of Indiabulls, has denied these allegations and both parties are fighting a legal battle after an attempt for an out-of-court settlement reached a deadlock. In November, Rattan filed a voluntary winding-up petition of the company. RattanIndia Finance has a INR 850 crore balance with banks since it has stopped its lending business for over a year. Rattan had offered USD 65 million to LSF for its 50% stake in the company, on condition that the PE firm stops pursuing all legal remedies against him. Rattan has alleged that Lone Star wanted to exit the Asia region as announced in July 2021 and hence it was “pressurising India promoters to buy their stake at an unrealistic price before the lock-in period ends.” The NCLT is set to hear the matter on January 24. Abhishek Manu Singhvi is legal counsel for Rajiv Rattan and Kapil Sibal is legal counsel for Lone Star.