The National Company Law Tribunal (NCLT) on Monday admitted the petition moved by the RBI to initiate insolvency proceedings against Reliance Capital (RCL) under the Insolvency and Bankruptcy Code (IBC).
The NCLT’s Mumbai bench also confirmed the appointment of Y Nageswar Rao as the administrator of the company.
RCL said it supports the Reserve Bank of India (RBI) application of referring the company to the NCLT under Section 227, for the fast-track resolution. “The company looks forward to expeditious resolution of its debt and continuation as a well-capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholders,” RCL said.
The RBI had superseded the board of directors of RCL, belonging to the Anil Ambani group, in view of the defaults by RCL in meeting various payment obligations to its creditors and serious governance concerns which the board has not been able to address effectively. RCL owes Rs 21,781.01 crore, including interest, as on October 31, 2021 to lenders.
This is the third time in recent years the RBI has superseded boards and initiated insolvency proceedings against major NBFCs.
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