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RBI retains advisory committee for Srei Group companies

RBI retains advisory committee for Srei Group companies

RBI retains advisory committee for Srei Group companies
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By CNBCTV18.com Oct 11, 2021 11:34:36 PM IST (Updated)

The RBI had constituted a three-member advisory committee on October 4 to assist the administrator in the discharge of his duties.

The Reserve Bank of India (RBI) on Monday said that it has decided to retain the three-member advisory committee of two Srei Group companies - Srei Infrastructure Finance Limited and Srei Equipment Finance Limited.

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The members of the Committee are R. Subramaniakumar, former MD & CEO, Indian Overseas Bank, T T Srinivasaraghavan, former Managing Director, Sundaram Finance Limited and Farokh N Subedar, former Chief Operating Officer and Company Secretary, Tata Sons Limited.
"Upon admission of the petitions for insolvency resolution process by the Kolkata Bench of the Hon’ble National Company Law Tribunal in respect of SIFL and SEFL vide orders dated October 08, 2021, the Reserve Bank has decided that the above mentioned three-member Committee shall continue as the Advisory Committee constituted under Rule 5 (c) of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019. The Advisory Committee shall advise the Administrator in the operations of the SIFL and SEFL during the corporate insolvency resolution process,"  the RBI said in a statement.
After superseding the boards of SIFL and SEFL last Monday, the Reserve Bank had appointed a three-member advisory committee to assist Rajneesh Sharma, administrator of the two crisis-ridden firms.
The Bombay High Court on October 7 had dismissed Srei Group's plea against RBI action on SREI Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL).
Srei Group, which mainly caters to the MSME and infrastructure sectors, owes around Rs 18,000 crore to around 15 lenders, including Axis Bank, UCO Bank and State Bank of India, and another nearly Rs 10,000 crore of external commercial borrowings and bonds.
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