The Reserve Bank of India (RBI) superseded the board of directors of Reliance Capital (RCL) Ltd, belonging to the Anil Ambani group, in view of the defaults by RCL in meeting the various payment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 has appointed Nageswar Rao Y, former Executive Director, Bank of Maharashtra, as the Administrator of the company under Section 45-IE (2) of the RBI Act.
In exercise of powers conferred under section 45-IE (5) (a) of the RBI Act 1934, the Reserve Bank has constituted a three-member Advisory Committee to assist the Administrator in discharge of his duties. The members of the Advisory Committee are as follows:
- Sanjeev Nautiyal, ex-DMD, State Bank of India
- Srinivasan Varadarajan, ex-DMD, Axis Bank
- Praveen P Kadle, ex-MD & CEO, Tata Capital Limited
The RBI will also apply to the National Company Law Tribunal (NCLT), Mumbai for appointing the Administrator as the Insolvency Resolution professional.
On October 5, the RBI superseded the boards of Kolkata-based NBFCs Srei Infrastructure Finance and Srei Equipment Finance. Earlier, it had superseded the board of Dewan Housing Finance (DHFL). DHFL has been acquired by the Piramal group.