Reliance Capital owes its creditors over Rs 19,805 crore, majority of the amount through bonds under the trustee Vistra ITCL India.
The firms recently filing bankruptcy filing includes- Srei Group Firms, DHFL, and now Reliance Capital has become the next NBFC facing bankruptcy proceedings triggered by banking regulator, RBI under section 227 for fast track resolution before the Mumbai Bench of NCLT.
The Mumbai bench of the National Company Law Tribunal admitted the Reserve Bank’s plea to initiate insolvency resolution proceedings against Reliance Capital. Last month, the RBI had superseded Reliance Capital’s board, citing defaults and governance issues. The central bank said it has retained the three-member Advisory Committee to assist the newly appointed administrator of the crisis-ridden NBFC.
Upon admission of the petition, the RBI said it has decided that “the three-member Committee shall continue as the Advisory Committee” under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The members of the advisory panel are — Sanjeev Nautiyal (ex-DMD, State Bank of India), Srinivasan Varadarajan (ex-DMD, Axis Bank), and Praveen P Kadle (ex-MD and CEO, Tata Capital Limited).
Image: MSN
