Bombay HC on October 7 dismissed the Srei Group against Bank of India Reserve (RBI) Action on the Srei Finance Ltd Infrastructure (SIFL) and SREI Equipment Finance Ltd (SEFL) The promoters of the SREI Group, Adisri Commercial Private Ltd, had submitted a written request against the RBI by challenging the order and had also sought a stay in initiating the insolvency procedures against the infrastructure of SREI Finance Ltd (SIFL) and SREI Equipment Finance Ltd (SEFL).
By dismissing the petition, the court said that it will give the reasons later, a person familiar with development said MoneyControl The group will decide the future course of action after considering the reasons,” the person said anonymous On October 4, the RBI announced the acquisition of SRI INFRA and SREI Equipment Finance Boards due to the concerns of governance and breaches of the companies of the SREI Group The RBI also appointed Rajneesh Sharma, the former main general manager of Bank of Baroda, as an administrator.
HC’s order is a jolt to the group based on Kolkata that has challenged the decision of the Central Bank Reacting to the measure of RBI on October 4, the SREI group, in an official communication, had expressed “shock” on the RBI movement and said it will explore legal options. Srei Group said banks regularly applied the funds from the custody account that controlled since November 2020.
“In addition, we have not received any communication from the banks in any fault,” said the group in a statement made available to MoneyControl The RBI movement came a week after the creditors of the Srei Group rejected the administration proposal to grant the company a one-year-old point of any action, legal or otherwise, to recover the estimated installments in around RS 30,000 million rupees.
Srei Group said it presented a proposal to pay the total amount to banks under a plan presented under Section 230 of the 2013 Companies Law in October 2020. Banks did not accept it or propose an acceptable payment schedule For them, he said Banks have been controlling the company’s cash flow since November 2020. Almost RS 3,000 Crore have been collected by them, of which they have been disbursing themselves,” said the statement.
In the last three decades, Srei has already paid RS 30,000 million rupees as an interest and other director of RS 20,000 Crore to banks, he said There has never been a delay in the Loan service by SREI in the past before Covid-19 devaste the country, said the group We are also surprised because the NCLT order for all creditors is still in process. There is also an order for” non-coercive measures “by creditors and / or regulators. We will take all necessary measures as advised to our lawyers in this regard. “The group said The RBI soon would initiate the process of resolutions of non-banking financial companies (NBFCs) under the insolvency and bankruptcy rules of 2019 and will request the National Law Law (NCLL) to designate the administrator as the Resolution Professional of insolvency, the central banks said in a statement.