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Lone Star-Rattan settlement talks over NBFC JV deadlocked

The US PE fund and Rajiv Rattan have negotiated a price for the former’s exit from RattanIndia Finance, but talks stuck on Lone Star withdrawing legal case against Rattan.

September 28, 2021 / 01:57 PM IST
Representative Image (Shutterstock)

Representative Image (Shutterstock)

Out-of-court settlement talks between Rajiv Rattan and Lone Star Funds have reached a deadlock despite both agreeing in principle to part ways, with the former agreeing to acquire Lone Star’s entire stake for $65 million in RattanIndia Finance, two persons with knowledge of the matter said.

RattanIndia Finance, a 50:50 joint venture between Rajiv Rattan and Lone Star, hit the headlines mid-May when the US-based private equity (PE) fund alleged that its partner had siphoned off funds and sought approval from the National Company Law Tribunal (NCLT) to conduct a forensic audit aimed at investigating alleged fraud in the non-banking finance company (NBFC).

Rajiv Rattan, who co-founded Indiabulls Group in 2000, has denied the allegations of fraud. He did not respond to requests for comments while Lone Star has denied talks of settlement.

A lingering dispute