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RBI Supersedes Reliance Capital Board, All Set To Approach NCLT

The move by the RBI came after Reliance Capital defaulted on several repayment fronts to its creditors. Apart from that, the regulator also found several serious corporate governance errors.

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The Reserve Bank of India (RBI) on Monday superseded the board of Reliance Capital and is all set to approach the National Company Law Tribunal (NCLT) to initiate the resolution process.

The move by the RBI came after Reliance Capital defaulted on several repayment fronts to its creditors. Apart from that, the regulator also found several serious corporate governance errors. 

The RBI in a circular said that it is also going to approach the NCLT, Mumbai in order to appoint the Administrator as the Insolvency Resolution Professional. 

Meanwhile, the Central Bank said that the former executive director at Bank of Maharashtra, Nageswar Rao Y is now going to act as the administrator of the non-bank lender, which was founded by Anil Dhirubhai Ambani.

Anil Dhirubhai Ambani Group, the non-bank moneylender, fell into tough situations as a consequence of the breakdown of IL&FS in September 2018. Reliance Capital was unable to take care of repayment of debt and simultaneously gather cash from its borrowers in an endless loop that saw it auction a few significant auxiliaries, including Reliance Mutual Fund.


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rbi Reliance Capital Board NCLT