RBI supersedes board of Reliance Capital, appoints administrator

The Reserve Bank of India (RBI) on Monday outmoded the board of Reliance Capital, promoted by Anil Ambani’s Reliance Group, in view of the defaults in assembly fee obligations. Additionally, it appointed Nageswar Rao Y, the previous Executive Director of Bank of Maharashtra because the administrator of the corporate.
In a press launch, the central financial institution stated, “In exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious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.”
It additional knowledgeable that Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) has been appointed because the Administrator of the corporate beneath Section 45-IE (2) of the RBI Act.
“The Reserve Bank 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 assertion stated.
The RBI may even apply to the NCLT, Mumbai for appointing the administrator because the Insolvency Resolution  Professional.