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The RBI said the board has been superseded ”in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the Board has not been able to address effectively”.
It has also appointed Nageswar Rao Y (Ex-Executive Director, Bank of Maharashtra) as the administrator of the NBFC. ”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. The Reserve Bank will also apply to the NCLT, Mumbai, for appointing the administrator as the Insolvency Resolution Professional.