RBI supersedes Reliance Capital Board over dues

New Delhi, November 29

The Reserve Bank of India (RBI) on Monday superseded the board of Reliance Capital and will shortly initiate insolvency proceedings against it under the Insolvency and Bankruptcy Rules, 2019.

Owned by Anil Ambani

• Reliance Capital was first flagged by RBI auditors in June 2019
• They found lack of clarity in accounting methodology in fourth-quarter results
• Anil Ambani group-led firm failed to make several debt obligation payments

The board was superseded for failing to meet its payment obligations to creditors and serious governance concerns, which the board of the company has not been able to address effectively, said the RBI in a statement. Further, the RBI will also apply to the Mumbai Bench of National Company Law Tribunal (NCLT) to appoint the administrator as the insolvency resolution professional. Nageswar Rao, former executive director, Bank of Maharashtra, has been appointed as the administrator of Reliance Capital. This is the third instance of RBI initiating insolvency proceedings against a non-banking financial company after Dewan Housing Finance Limited (DHFL) and the Srei Group