Insight Online News
New Delhi, Nov 29 : The Reserve Bank of India (RBI) on Monday superseded the Board of Directors of Reliance Capital Ltd (RCL), in view of the defaults by the company in meeting various payment obligations to its creditors and serious governance concerns.
“In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns, which the Board has not been able to address effectively,” the RBI said in a press release.
Nageswar Rao Y, former Executive Director (ED) of Bank of Maharashtra, has been appointed as the Administrator of the company.
RBI will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
RBI will also apply to the NCLT, Mumbai for appointing the Administrator as the Insolvency Resolution Professional.