The Reserve Bank of India has constituted a three-member advisory committee to assist the Administrator of Reliance Capital Ltd which came under the insolvency process on Monday. The members of the Advisory Committee include Sanjeev Nautiyal, former DMD, State Bank of India, Srinivasan Varadarajan, former DMD, Axis Bank and Praveen P Kadle, former MD & CEO, Tata Capital Ltd.
The RBI superseded the board of directors of RCL, belonging to the Anil Ambani group, in view of the defaults by RCL in meeting the various payment obligations to its creditors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. RCL owes Rs 21,781.01 crore, including interest, as on October 31, 2021 to lenders.
The central bank had appointed Nageswar Rao Y, former Executive Director, Bank of Maharashtra, as the Administrator of the company under Section 45-IE (2) of the RBI Act. On October 5, the RBI superseded the boards of Kolkata-based NBFCs Srei Infrastructure Finance and Srei Equipment Finance. Earlier, the RBI had superseded the board of Dewan Housing Finance (DHFL).