RBI has commenced bankruptcy proceedings against Reliance Capital Limited
The Reserve Bank of India (RBI) on Tuesday said it has retained its three-member advisory committee to help the newly appointed administrator of Reliance Capital Limited (RCL).
The central bank’s announcement comes a day after the Mumbai conference of the National Companies Law Court (NCLT) admitted its petition for the initiation of insolvency proceedings. against Reliance Capital.
Last month, RBI replaced Reliance Capital’s board of directors, citing defaults and governance issues.
After accepting the petition, the RBI said it had decided that “the three-member committee will continue as the Advisory Committee” under the Suppliers Bankruptcy and Insolvency Rules. financial services and applications for jurisdiction), 2019.
The advisory committee will advise administrator Nageswara Rao Y on Reliance Capital Limited’s activities during the resolution of the company’s insolvency.
The members of the advisory board are – Sanjeev Nautiyal (former deputy managing director of State Bank of India), Srinivasan Varadarajan (former deputy managing director of Axis Bank) and Praveen P Kadle, former managing director and managing director of the State Bank of India. Managing Director of Tata Capital Limited .
Reliance Capital owes its creditors more than Rs 19,805 crore, most of the money through bonds of trust company Vistra ITCL India.
