M/s Reliance Capital Ltd

The Reserve Bank of India exercised powers under Section 45-IE(1) of the RBI Act, 1934 to supersede the Board of Directors of M/s Reliance Capital Ltd. The stated reasons were defaults by RCL in meeting various payment obligations to its creditors and serious governance concerns that the board had not been able to address effectively. RBI also appointed Shri Nageswar Rao Y as Administrator under Section 45-IE(2) and said it would initiate resolution proceedings under the Insolvency and Bankruptcy rules and seek NCLT appointment of the Administrator as Insolvency Resolution Professional.

RCL’s board and management control were removed and replaced by an Administrator. The company is headed into resolution proceedings, with the Administrator expected to manage the process and potentially act as Insolvency Resolution Professional; creditors and other stakeholders are affected by the insolvency-resolution process.