In exercise of the powers conferred under Section 45-IE(1) of the Reserve Bank of India Act, 1934, the Reserve Bank has yesterday superseded the Board of Directors of M/s Reliance Capital Ltd. (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively. Shri Nageswar Rao Y. (Ex-Executive Director, Bank of Maharashtra) has been appointed as the Administrator of the company under Section 45-IE(2) of the RBI Act.
The Reserve Bank of India will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The RBI will also apply to the National Company Law Tribunal (NCLT), Mumbai for appointing the Administrator as the Insolvency Resolution Professional.