The members of the committee are: R Subramaniakumar (Former MD & CEO,
Bank), TT Srinivasaraghavan (Former Managing Director, Sundaram Finance Limited), and Farooq N Subedar (Former Chief Operating Officer and Company Secretary, Tata Sons Limited).
On October 8, the central bank had filed an application in the Kolkata bench of the National Company Law Tribunal to initiate the corporate insolvency resolution process against SIFL and SEFL.
In a statement on Monday, the RBI said that upon acceptance of the petitions by the NCLT, it has decided that the three-member committee will “continue as an advisory committee” under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers) has been constituted. Application to the Adjudicating Authority) Rules, 2019.
It added that the advisory committee would advise the administrator in the conduct of SIFL and SEFL during the corporate insolvency resolution process.
It may be mentioned that the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application for Adjudication Authority) Rules, 2019 is a set of advisors for the concerned financial sector regulator to advise the administrator in the conduct of financial services. Provides for appointment of committee. provider during the corporate insolvency resolution process.
The Srei Group, which primarily caters to the MSME and infrastructure sectors, owes around Rs 18,000 crore to around 15 lenders including Axis Bank, UCO Bank and the state.
, and external commercial borrowings and bonds of about Rs 10,000 crore.
The Bombay High Court on October 7 dismissed the Srei Group’s plea against the RBI’s action on Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL).