Supersession of the Board of Directors and Appointment of Administrator – M/s Reliance Capital Ltd

Last updated: 02 December 2021

Save Share

Quick Summary

The Reserve Bank of India has taken over the Board of Directors of M/s Reliance Capital Ltd (RCL). This action was taken due to RCL's failure to meet its payment obligations to creditors and significant governance concerns that the board could not resolve. Shri Nageswar Rao Y has been appointed as the Administrator to manage the company. The RBI plans to start the resolution process for RCL soon.

Reserve Bank of India

Date : Nov 29, 2021

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of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of M/s Reliance Capital Ltd (RCL) in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious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. Shri Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) has been appointed as the Administrator of the company under 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. Reserve Bank will also apply to the NCLT, Mumbai for appointing the Administrator as the Insolvency Resolution Professional.

(Yogesh Dayal)
Chief General Manager

Press Release: 2021-2022/1272

FAQ :

The RBI has superseded RCL's Board due to defaults in meeting payment obligations to creditors and serious governance concerns that the Board failed to address effectively.

Shri Nageswar Rao Y, former Executive Director of Bank of Maharashtra, has been appointed as the Administrator.

The RBI has acted under the powers conferred by Section 45-IE (1) of the Reserve Bank of India Act, 1934.

The Reserve Bank will initiate the company's resolution process under the Insolvency and Bankruptcy Rules, 2019, and will apply to the NCLT, Mumbai to appoint the Administrator as the Insolvency Resolution Professional.