Religare Enterprises Ltd (REL) on Friday, December 30, said lenders have approved the one-time settlement (OTS) of outstanding dues of its wholly-owned subsidiary Religare Finvest Ltd (RFL). "We would like to update that in accordance with the terms of the sanction letters received from the OTS lenders, RFL along with the parent company has entered into a settlement agreement on 30 December 2022 in connection with the OTS with all the following 16 secured lenders (OTS Lenders) for full & final settlement w.r.t. all their outstanding dues of RFL," the company said in an exchange filing.
Recommended ArticlesView All
Worldview: Biden at the State of Union | 'Let’s finish the job'
Feb 8, 2023 IST6 Min(s) Read
Delhi is one of the most populated cities prone to earthquakes in India — can it handle what Turkey couldn't
Feb 7, 2023 IST6 Min(s) Read
A look at Salman Rushdie’s Victory City and controversies surrounding the author
Feb 7, 2023 IST4 Min(s) Read
Ways to save tax other than Section 80C with your home loan
Feb 7, 2023 IST3 Min(s) Read
"RFL has been taking necessary corrective measures as advised by the Reserve Bank of India and it will seek removal of the CAP (Corrective Action Plan) in due course so that it can restart the lending business," the company said.
RFL, an NBFC arm of Religare Enterprises Ltd, owed about Rs 5,300 crore to the consortium of lenders led by the State Bank of India (SBI). As part of the proposed OTS, the company in June 2022 deposited Rs 220-crore earnest money, with the lead lender demonstrating its commitment towards RFL revival.
RFL was put under the corrective action plan (CAP) by RBI in January 2018 due to issues related to siphoning and misappropriation of funds by erstwhile promoters of REL and their associates. RFL has been in financial distress due to the alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh.
Multiple investigative agencies are probing the case of financial bungling of about Rs 4,000 crore. State Bank of India (SBI) is the lead banker to the 18-lender consortium.
Capital markets regulator SEBI earlier this year imposed a penalty totalling Rs 60 crore on 10 entities, including the Singh brothers in a case involving the diversion of funds of RFL.
In addition, the Singh brothers have been barred from the securities market for three years, or till the recovery of the diverted money along with interest, while other entities have been prohibited for two years.
It is to be noted that RFL's parent entity Religare Enterprises in July 2021 raised Rs 570 crore by way of a preferential issue of equity shares to its existing as well as new shareholders.