New Delhi: The Reserve Bank of India (RBI) on Monday superseded the board of directors of non-banking financial companies Srei Infrastructure Finance Ltd and Srei Equipment Finance Limited and has appointed an administrator. The apex lender said that the action was taken in light of governance concerns and payment defaults by the two companies.
In a statement, RBI said it has appointed Rajneesh Sharma, ex-chief general manager of Bank of Baroda, as the administrator of the companies. The Reserve Bank has constituted a three-member advisory committee to assist the administrator. The members of the panel are R Subramaniakumar, former MD & CEO, Indian Overseas Bank, T T Srinivasaraghavan, former MD, Sundaram Finance Limited and Farokh N Subedar, former COO and Company Secretary, Tata Sons Limited.
“The Reserve Bank also intends to shortly initiate the process of resolution of the two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional,” it said.
Srei group owes around Rs 18,000 crore to around 15 lenders, including Axis Bank, UCO Bank and State Bank of India.
(With PTI inputs)
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