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The Reserve Bank of India had on October 4 superseded the boards of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), paving the way for their resolution.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