Categories: Business

RBI superseded Reliance Capital board & appoints Nageswar Rao as administrator

Reserve Bank of India (RBI) superseded the Board of Directors of Reliance Capital Ltd (RCL), a Non-Banking Financial Company (NBFC), by exercising its power conferred under Section 45-IE (1) of the RBI Act, 1934. RCL is promoted by Anil Dhirubhai Ambani’s Reliance Group. In this regard, the apex bank has appointed Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) as the Administrator of the company under Section 45-IE (2) of the RBI Act. The reason behind this is the defaults made by RCL for various debt obligations payments and serious governance concerns.

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The Central Bank will also apply to the National Company Law Tribunal (NCLT) for appointing the administrator as the Insolvency Resolution Professional. Reliance Capital will become the third non-banking financial company to go under the insolvency procedure after DHFL and Srei Group companies. A part of Anil Dhirubhai Ambani Group, Reliance Capital has repeatedly failed to repay its debt obligations.

RBI appoints advisory committee to assist Reliance Capital administrator:

The Reserve Bank of India has appointed an advisory committee to advise the administrator of Reliance Capital. The committee includes Sanjeev Nautiyal, ex-DMD of State Bank of India, Srinivasan Varadarajan, ex-DMD of Axis Bank, and Praveen P Kadle, ex-MD & CEO, Tata Capital Limited.

Important takeaways for all competitive exams:

  • Reliance Capital Ltd CEO: Jai Anmol Ambani;
  • Reliance Capital Ltd Headquarters: Santacruz, Mumbai;
  • Reliance Capital Ltd Founder: Dhirubhai Ambani;
  • Reliance Capital Ltd Founded: 5 March 1986.

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Sumit Arora

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