Companies

Bombay HC dismisses petition by Srei promoters

Our Bureau Mumbai | Updated on October 07, 2021

The RBI can now move the National Company Law Tribunal to initiate proceedings against the two companies

The Bombay High Court on Thursday dismissed the petition by promoters of Srei Group challenging the move by the Reserve Bank of India to supersede the boards of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL).

 

A Writ Petition was filed by Adisri Commercial Private Ltd and Hemant Kanoria, the promoters of Srei, seeking to stay the insolvency proceedings initiated by the RBI.

 

After hearing the petition on Thursday, the Bombay High Court said it is not inclined to entertain the matter.

 

The Reserve Bank of India had on October 4 superseded the boards of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), paving the way for their resolution.

Also read: Srei Infra and Equipment Finance have debt obligations of over ₹29,000 crore

It has also appointed Rajneesh Sharma, Ex-Chief General Manager, Bank of Baroda, as the Administrator of the companies under Section 45-IE (2) of the RBI Act.

 

The RBI can now move the Kolkata Bench of the National Company Law Tribunal to initiate proceedings against the two companies. Sources said the promoters of Srei Group may look at other options.

 

The SIFL scrip fell 4.89 per cent to close at Rs 7.39 apiece on the BSE on Thursday.

 

 

Published on October 07, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like