Reserve Bank of India  supersedes boards of SREI companies, to initiate insolvency proceedings soon

Mumbai : The Reserve Bank of India (RBI) has superseded the boards of Srei Infrastructure Finance and Srei Equipment Finance owing to governance concerns and defaults by the two companies and appointed Rajneesh Sharma, Ex- Chief General Manager, Bank of Baroda as the Administrator of the aforesaid companies.

The RBI has also announced that insolvency proceedings will be initiated against the two companies.

“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of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL), owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations” said a RBI circular.

“Rajneesh Sharma, Ex- Chief General Manager, Bank of Baroda has been appointed as the Administrator of the aforesaid companies under Section 45-IE (2) of the RBI Act. The Reserve Bank also intends to shortly initiate the process of resolution of the above two NBFCs under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional” the circular said.