‘Religare to complete RFL debt recast by Dec’1 min read . Updated: 05 Oct 2020, 07:46 AM IST
Religare Enterprises chairperson Rashmi Saluja says Religare Finvest Ltd is likely to complete its debt restructuring by Dec and start new business from next fiscal
Having paid ₹6,500 crore to lenders since the change of management in 2018, Religare Finvest Ltd (RFL) is likely to complete its debt restructuring by December and start new business from next fiscal, Religare Enterprises chairperson Rashmi Saluja said.
RFL, a NBFC arm of Religare Enterprises Ltd, has been barred from undertaking fresh business as it is under corrective action plan (CAP) of the Reserve Bank of India (RBI) since January 2018 due to its weak financial health.
The company has been in financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh.
“Worst is behind...while all other business are performing, RFL is slowly getting out of woods. Two years ago, all four wheels (of RFL) were in the ditch and the wheels were stuck. Now the wheels are on the ground and we are refuelling for a take off," Saluja told PTI in an interview.
Besides RFL, Care Health Insurance Ltd (CHIL) and Religare Broking Ltd are the other subsidiaries of Religare Enterprises. RFL is still combating the wrongdoings of the erstwhile promoters and others, who caused fraud of about ₹4,000 crore, Saluja said, adding that legal and other means have been undertaken to recover the money.