reserve Bank of India (reserve Bank of India) has appointed an advisory committee to advise the administrators of the two companies, who were removed earlier today. The central bank said in a statement on Monday that the three-member panel will assist the administrator in the discharge of his duties.
The central bank on Monday took over the boards of Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd over governance concerns and defaults by the two companies in meeting their various payment obligations. It had appointed former Chief General Manager of Bank of Baroda Rajnish Sharma as the administrator of both the companies.
RBI said, “The Reserve Bank, in exercise of the powers conferred under section 45-IE(5)(a) of the RBI Act, 1934, has constituted a three-member advisory committee to assist the Administrator in the discharge of his duties. ” Its statement.
The advisory panel includes R Subramaniakumar, former MD and CEO of Indian Overseas Bank; TT Srinivasaraghavan, former Managing Director of Sundaram Finance Limited; and Farooq N Subedar, former COO and Company Secretary of Tata Sons Ltd.
“It may also be mentioned that the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 to appoint a Committee of Advisors to advise the Administrator for the concerned financial sector regulator. makes provision for. financial services provider during the corporate insolvency resolution process,” the banking regulator further said.
RBI had earlier said that it also intends to initiate the process of reconciliation of both sarei NBFCs and administrators in NCLT will also apply for appointment of Kumar as insolvency resolution professional.
The RBI’s action comes a week after the creditors of Shreya Group declined the company’s requests for delay in taking legal or other kind of action for recovery of dues. ₹35,000 crores.
Last month, Shreya Infrastructure Finance CEO Rakesh Kumar Bhutoria resigned mainly due to salary payment issues.
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