Mumbai: reserve Bank of India has filed an application with National Company Law Tribunal ,NCLT) to initiate insolvency proceedings against Anil Ambani-owned Reliance Capital. The move comes two days after the central bank’s supersession RCapThe board of directors cited lapses and serious governance issues.
RBI said that in terms of insolvency rules, an interim stay shall commence from the date of filing of the application till its admission or rejection. If the company is admitted to bankruptcy, it will be barred from setting up fresh lawsuits or continuing pending litigation or proceedings against the debtor. The Company is also barred from transfer, levying, alienating or disposing of any of its assets.
Reliance Capital is the third financial services firm that is facing insolvency proceedings after the law was amended to include NBFCs.
RBI said that in terms of insolvency rules, an interim stay shall commence from the date of filing of the application till its admission or rejection. If the company is admitted to bankruptcy, it will be barred from setting up fresh lawsuits or continuing pending litigation or proceedings against the debtor. The Company is also barred from transfer, levying, alienating or disposing of any of its assets.
Reliance Capital is the third financial services firm that is facing insolvency proceedings after the law was amended to include NBFCs.
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