National Company Law Tribunal (NCLT) on Monday accepted the Reserve Bank’s plea to initiate insolvency resolution process against Reliance Capital. last week, reserve Bank of India (RBI) filed an application to initiate the Corporate Insolvency Resolution Process (CIRP) against the company. The apex bank had superseded the board citing defaults and governance issues.

Earlier on Monday, the Mumbai bench of NCLT comprising Pradeep Narhari Deshmukh and Kapal Kumar Vohra had reserved the order. Later the bench accepted the application of RBI.

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.

Section 227 of the Insolvency and Bankruptcy Code (IBC) enables the government to notify, in consultation with financial sector regulators, categories of financial service providers or FSPs for the purpose of insolvency and liquidation proceedings.

The company said in the statement that the company will continue as a well-capitalized concern through prompt resolution of its debt and through the IBC process, for the overall interest of all its stakeholders including lenders, customers, employees and shareholders. is ready.

Reliance Capital owes over Rs 19,805 crore to its creditors, most of the amount through bonds under trustees View ITCL India,

The company is the third NBFC to go for resolution under Dewan Housing Finance (DHFL) and Kolkata-based IBC. Srei Group,