Reliance Capital Ltd Taking a big step, the Reserve Bank of India (RBI) has dissolved the board of Reliance Capital on Monday. According to a report released in this regard, after the dissolution of the board, RBI has appointed an administrator in its place
Reliance Capital Ltd Taking a big step, the Reserve Bank of India (RBI) has dissolved the board of Reliance Capital on Monday. According to a report released in this regard, after the dissolution of the board, RBI has appointed an administrator in its place. Actually, RBI has taken over the management and an administrator was appointed for it. Now he will take full responsibility of the company.
With this move of RBI, the troubles of industrialist Anil Ambani and his company do not seem to end. In a major setback to the Anil Dhirubhai Ambani Group, the Reserve Bank of India has suspended the board of its financial company Reliance Capital Limited. In the matter, the RBI issued an official statement saying that in exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the board of Reliance Capital is suspended.
Also, now his work will be under the RBI. For this, the central bank appointed an administrator, who is Nageswara Rao Y, former executive director of Bank of Maharashtra. RBI further said that the board was not able to do its job and did not even refund the money to the investors. Because of this he was forced to take this decision. The central bank has said in its statement that the bank will soon start the process of resolution of the company under the Insolvency and Bankruptcy Rules, 2019.
Let us tell you that till 31 October 2021, a total debt of Rs 21 thousand 781 crore is outstanding on Reliance Capital. Apart from this, the company failed to pay interest of Rs 5.48 crore on term loan of Rs 624.61 crore. In such a situation, soon RBI will take action on Reliance Capital under the bankruptcy law.
