RBI supersedes board of Reliance Capital, appoints administrator

The RBI on Monday superseded the board of Reliance Capital Ltd (RCL), promoted by Anil Ambani's Reliance Group, in view of the defaults in meeting payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively. The RBI has also appointed Nageswar Rao as the administrator of the NBFC. Rao is ex-Executive Director, Bank of Maharashtra. 

"The Reserve Bank will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019," the central bank said in a statement. It will also apply to the NCLT, Mumbai, for appointing the administrator as the Insolvency Resolution Professional.