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The deadline for the submission of Resolution Plan for Reliance Capital (RCAP) is likely to be extended yet again as bidders seek more time to complete the due diligence process.

According to sources, few bidders, including Piramal, Torrent, Oaktree and IndusInd, have written to the RCAP Administrator to extend the deadline by 20 to 35 days.

The RCAP resolution plan submission date has already been extended four times in the past couple of months. The current deadline to submit the plan ends on August 10, while the original date was May 26.

Some bidders want the present deadline of August 10 to be pushed to August 30, while some have sought extension till September 15.

The Committee of Creditors (COC) will be meeting in the coming week to take stock of the resolution process and consider the deadline extension.

The Reliance Capital had initially received 54 Expression of Interest (EOI), but now only a handful of bidders are active at the due diligence stage. Majority of the bidders have abandoned the process.

Owing to an extremely poor response to the Reliance Capital resolution plan, the COC has also waived the condition of paying Rs 75 crore Earnest Money Deposit (EMD), in the first submission date.

The move to waive off the EMD in the first submission date is yet another attempt by the COC to keep the resolution process going, as bidders continue to abandon the RCAP resolution process

One of the bidders, Piramal Group is also facing regulatory roadblock as IRDAI has flagged concerns over Piramal Group's bid for the Reliance Nippon Life Insurance. As per the regulations, Piramal, who already has a promoter stake in a life insurance firm, cannot pick up a similar stake in another life insurer.

The sources revealed that COC and Administrator are more keen on receiving bids under Option-1, i.e., for the Reliance Capital as a CIC (Core Investment Company).

Under Option-2, bidders can bid for 8 different businesses/clusters of RCAP, including General Insurance, Life Insurance, ARC, Securities business etc.

The RCAP resolution has been fraught with regulatory hurdles since the beginning of the process. After questions were raised on the resolution process of RCAP's multiple businesses under Option-2, the difference of opinion had emerged between COC and the Administrator.

The precondition of forming a consortium by the different bidders, for the bidding of RCAP's multiple business clusters, and making an all cash bids, drove the majority of the Resolution Applicants away.

As a result, out of 54 Prospective Resolution Applicants (PRA), only 5 to 6, including Piramal, Oaktree, Yes Bank, Torrent, IndusInd are now active.