Mumbai: National Company Law (NCLT) on Monday recognized a bank reserve application to begin the process of completing bankruptcy against reliance capital.
Last week, the Reserve Bank of India (RBI) submitted a request to begin the process of resurrection of corporate resurrection (CIRP) against the company.
APEX Bank has replaced the Reliance Capital Board, citing defaults and governance problems.
Earlier on Monday, the bench Mumbai from NCLT consisting of Pradeep Narhari Deshmukh and Kumar Vohra ship ordered orders.
Then, the bench recognized the RBI application.
In a statement, the company’s promoter said it supports the RBI application referring to the company to NCLT under Section 227 for fast track resolution.
Section 227 Code of Bankruptcy and Bankruptcy (IBC) allows the government to tell, by consultation with financial sector regulators, financial service providers or FSP categories for bankruptcy and liquidation processes.
The company looks forward to its rapid debt and continuation as a concern that is capitalized properly through the IBC process, in the entire interest of all its stakeholders, including lenders, customers, employees and shareholders, the company said in the statement.
Reliance Capital owed its creditor more than Rs 19,805 Crore, the majority of these numbers through bonds under the trustee of the Indian Vistra ITCL.
The company is the third NBFC for use under the IBC after the Finance Housing Board (DHFL) and the SREI group based in Kolkata.