On Monday a Mumbai court bench approved an application to initiate a decision-making process against Reliance Capital Ltd (RCL), a financial services company sponsored by Anil Ambani-led Reliance Group, under a fraud law.
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Last week, the Reserve Bank of India (RBI) spoke to the National Company Law Tribunal (NCLT), seeking to introduce loans from a non-bank company based in Mumbai (NBFC).
“The company is looking forward to resolving its debt as soon as possible and continues to be concerned about the IBC (Insolvency and Bankruptcy Code) process, for the benefit of all its stakeholders, including borrowing customers, employees and shareholders,” RCL said. said the statement.
RCL becomes the fourth financial services company to be admitted to NCLT following Dewan Housing Finance Corporation Ltd (DHFL) two years ago and two Srei Group firms in October this year. They were all dragged to court by creditors by the bank’s regulator.
On November 29, the RBI took over the RCL board following a series of debt problems caused by a non-bank person.
The following day, the state bank appointed an advisory committee to advise the RCL regulator. The committee includes Sanjeev Nautiyal, former DMD of the State Bank of India; Srinivasan Varadarajan, former DMD of Axis Bank; and Praveen P Kadle, former MD and CEO of Tata Capital.
Former Managing Director of Maharashtra Bank Nageswar Rao Y has been appointed Director, and will now manage the fundraising process and request applications from all creditors.
Reliance Capital limited has less than seven companies, including Reliance Nippon Life Insurance, Reliance General Insurance, Reliance Health Insurance, Reliance Securities, Trust Funds, Home Reliance Funds, Reliance Commercial Finance and Reliance Asset Reconstruction Company (ARC)).
In addition to the transaction process in the last year and a half, the U.S. asset manager Apollo Global Management Inc and SBI Life Insurance Company Ltd were among the 60 interested players to acquire various RCL assets full of debt.
In December 2020, VCCircle reported that businesses, including PE firms and reconstruction companies (ARCs) such as Blackstone, International Asset Reconstruction Company (IARC), KKR, Oaktree Capital, Bain Capital and JC Flowers was among the 60 players sent. .Reliance Capital limited Commodity Interest Speeches.
The National Investment and Infrastructure Fund (NIIF), Arpwood Partners, Dabur Investments, Bandhan Bank and Multiples Alternate Asset Management were other interested organizations.