RBI retains three-member advisory committee of Reliance Capital
This comes just a day after NCLT admitted the plea of RBI for initiating corporate insolvency resolution of Reliance Capital.
PremiumThe Reserve Bank of India (RBI) has retained the three-member advisory committee to assist the newly appointed administrator of Reliance Capital Ltd.
This comes just a day after National Company Law Tribunal (NCLT) admitted the plea of central bank for initiating corporate insolvency resolution of the crisis-ridden NBFC.
Last month, the RBI had superseded Reliance Capital's board, citing the company's inability to pay to its creditors and serious governance issues.
Upon admission of the petition, the RBI said it has decided that "the three-member Committee shall continue as the Advisory Committee" under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.
The Advisory Committee will advise administrator Nageswara Rao Y in the operations of Reliance Capital Ltd during the corporate insolvency resolution process.
The members of the advisory panel are -- Sanjeev Nautiyal (ex-DMD, State Bank of India), Srinivasan Varadarajan (ex-DMD, Axis Bank), and Praveen P Kadle (ex-MD and CEO, Tata Capital Limited).
Reliance Capital owes its creditors over ₹19,805 crore, majority of the amount through bonds under the trustee Vistra ITCL India.
The company is the third NBFC to go for resolution under the Insolvency and Bankruptcy Code (IBC) after Dewan Housing Finance (DHFL) and Kolkata-based Srei Group.
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