The consortium of Varde Partners and Arena has raised concerns over the debt resolution process of Sri Infrastructure Finance and Sri Equipment Finance. In a communication to the administrator of Srei, Varde has said the process was unreasonable, unfair, rushed and ad hoc.

Varde-Arena had offered a marginally higher cash component in their earlier round of bidding compared to the other bidders — National Asset Reconstruction Company (NARCL) and Authum. However, NARCL emerged the highest bidder under the challenge mechanism with a net present value of ₹5,555 crore.

This was a significant increase from the initial bid submitted on December 2, where the cash and NPV component was equivalent to around ₹3,200 crore. NARCL has now increased the cash component to ₹3,250 crore from ₹2,100 crore earlier.

Varde has said in its letter that the challenge mechanism was carried out in a short timeline of just one week without any consideration of prior requests for adequate time for evaluation considering Christmas and New Year holidays in the US.

The Varde-Arena consortium is understood to have submitted a revised bid with an additional cash component aggregating ₹3,600 crore. According to sources, Varde’s revised bid may not be considered since it came after the deadline. All bidders were told to submit their debt resolution plan by January 5, as per the bids placed earlier. There is no scope for revising the bid at this stage,” said a source.

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