The company’s shares were trading at Rs 14.10, down more than 4 per cent on the BSE.
“In pursuance of the order dated 6th December, 2021 of the National Company Law Tribunal, Mumbai, Corporate Insolvency Resolution (CIRP) has been initiated against Reliance Capital Limited,” the company said in a regulatory filing.
Nageswara Rao Y has been appointed as the Administrator of the company vide order dated 6th December, 2021.
The National Company Law Tribunal (NCLT) on Monday allowed the Reserve Bank’s plea to initiate insolvency resolution process against Reliance Capital. NS reserve Bank of India (RBI) last week filed an application to initiate the Corporate Insolvency Resolution Process (CIRP) against the company.
The apex bank had superseded the board of Reliance Capital citing defaults and governance issues.
In a statement, the promoters of the company said that they support the application of RBI to refer the company to NCLT under section 227 for fast track resolution.
Reliance Capital owes over Rs 19,805 crore to its creditors, most of the amount through bonds under trustee Vistara ITCL India.
The company is the third NBFC to go for resolution under Dewan Housing Finance (DHFL) and Kolkata-based IBC. Srei Group,