Start of insolvency proceedings against Reliance Capital; RBI file application – ThePrint

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New Delhi [India], Dec. 3 (ANI): On Thursday, the Reserve Bank filed an application to initiate the Corporate Insolvency Resolution Process (CIRP) against Reliance Capital under sections of the Insolvency and Bankruptcy Code , 2016 at the Mumbai Tribunal of the National Company Law Tribunal.

“The Reserve Bank has filed a request for the opening of CIRP against Reliance Capital Ltd., under article 227 read with clause (zk) of subsection (2) of article 239 of the Code of Insolvency and Bankruptcy (IBC), 2016 read with Rules 5 and 6 of the Insolvency and Bankruptcy Rules (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) , 2019 (“FSP Insolvency Rules”) at the National Company Law Tribunal, Mumbai, ”the official notification from RBI states.

The RBI replaced the board of directors of Reliance Capital Ltd (RCL) on Monday due to the company’s breaches of various payment obligations to its creditors and “serious governance issues to which the board has not been able to solve effectively ”.

The RBI said in a statement that it had appointed Nageswar Rao, former executive director of the Bank of Maharashtra, as a director of the company under section 45-IE (2) of the RBI Act.

The central bank has announced that it will soon initiate the process of resolving the company under the 2019 insolvency and bankruptcy rules (insolvency and liquidation proceedings of financial service providers and application to the adjudication authority).

The bank said it would also move NCLT, Mumbai, for the administrator’s appointment as an insolvency resolution professional. (ANI)

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