Thursday, 27 January, 2022
HomeEconomyRBI supersedes board of Anil Ambani's Reliance Capital over defaults in payment

RBI supersedes board of Anil Ambani’s Reliance Capital over defaults in payment

The central bank also appointed Bank of Maharashtra's former executive director Nageswar Rao Y as the administrator of the NBFC.

Text Size:

Mumbai: The RBI on Monday superseded the board of Reliance Capital Ltd (RCL), promoted by Anil Ambani’s Reliance Group, in view of the defaults in meeting payment obligations.

The RBI said the board has been superseded “in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able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”.

It has also appointed Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) as the administrator of the NBFC.

“The Reserve Bank 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,” the central bank said in a statement.

The Reserve Bank will also apply to the NCLT, Mumbai, for appointing the administrator as the Insolvency Resolution Professional.


Also read: This is how Mukesh Ambani is planning to pass on Reliance empire to his successors


 

Subscribe to our channels on YouTube & Telegram

Why news media is in crisis & How you can fix it

India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises.

But the news media is in a crisis of its own. There have been brutal layoffs and pay-cuts. The best of journalism is shrinking, yielding to crude prime-time spectacle.

ThePrint has the finest young reporters, columnists and editors working for it. Sustaining journalism of this quality needs smart and thinking people like you to pay for it. Whether you live in India or overseas, you can do it here.

Support Our Journalism

Most Popular

×