Piramal Enterprises Limited (BSE:500302) and Zurich Insurance Group AG (SWX:ZURN) plan to form a joint venture for taking over Reliance General Insurance Company Limited, a subsidiary of debt-ridden Reliance Capital Limited (NSEI:RELCAPITAL) undergoing a resolution process. Both Piramal and Zurich, which had submitted separate non-binding bids for the general insurance business of Reliance Capital in August, may hold 50% each in the proposed special purpose vehicle (SPV), sources said. Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under Insolvency and Bankruptcy Code (IBC).

"The terms of any transaction are subject to negotiations and there can be no assurance that a transaction will take place," the company said in an email reply. However, Zurich did not indicate any possible joint venture in works with Piramal Group to acquire Reliance General Insurance. An email sent to Piramal Enterprises on the matter did not elicit any response.