Srei: Administrator admits Rs 22,910 cr claims from banks

Citing governance concerns and defaults by the 2 NBFCs successful their assorted outgo obligations, the RBI superseded their boards and appointed Sharma, erstwhile main wide manager, Bank of Baroda, arsenic the administrator.

The Reserve Bank of India-appointed head has admitted full claims of Rs 22,910.49 crore of commercialized banks’ connected Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance, against the combined magnitude of Rs 25,115.29 crore claimed by them.

Administrator Rajneesh Sharma has rejected claims of astir Rs 1,604.63 crore by the commercialized banks, portion Rs 601.37 crore is nether verification arsenic of November 19.

The Kolkata seat of the National Company Law Tribunal (NCLT) connected October 8 gave its support to commencement insolvency proceedings against Srei Infrastructure Finance and Srei Equipment Finance aft the Reserve Bank of India (RBI) filed insolvency applications against them.

The cardinal slope filed the insolvency petitions conscionable aft the Bombay High Court dismissed a writ petition filed by 2 promoters of Srei radical challenging the RBI’s determination to supersede the boards of these companies and initiate insolvency proceedings against them.

The 2nd gathering of the committee of creditors of Srei Equipment Finance was convened and conducted connected Monday.

At the meeting, the head apprised the committee of creditors of the existent presumption of the Corporate Insolvency Resolution Process (CIRP), the creation of the committee based connected the claims received, and the mode guardant connected the solution strategy — including radical solution and timelines — according to a banal speech filing by Srei Infrastructure Finance.

On a petition made by nationalist assemblage lender Uco Bank, the RBI had filed applications for initiation of the CIRP nether the Insolvency and Bankruptcy Code against the 2 companies done Sanjay Ginodia, elder spouse of R Ginodia & Co.

Citing governance concerns and defaults by the 2 NBFCs successful their assorted outgo obligations, the RBI superseded their boards and appointed Sharma, erstwhile main wide manager, Bank of Baroda, arsenic the administrator.

The cardinal slope has besides constituted a three-member advisory committee to assistance the administrator. The committee members are R Subramaniakumar, erstwhile MD & CEO, Indian Overseas Bank; T Srinivasaraghavan, erstwhile MD, Sundaram Finance; and Farokh N Subedar, erstwhile COO and institution secretary, Tata Sons.