The Reserve Bank of India (RBI) on Monday superseded the board of directors of Reliance Capital Ltd (RCL) in view of the defaults by the company in meeting various payment obligations to its creditors and "serious governance concerns which the Board has not been able to address effectively".
The RBI said in a statement that it has appointed Nageswar Rao, former Executive Director of Bank of Maharashtra as the Administrator of the company under Section 45-IE (2) of the RBI Act.
The central bank said it 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 bank said it will also move NCLT, Mumbai, for appointing the Administrator as the Insolvency Resolution Professional.
( With inputs from ANI )
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