Supersession of the Board of Directors and Appointment of Administrator– Srei Infrastructure Finance Limited and Srei Equipment Finance Limited

Case Brief

The Reserve Bank of India superseded the Boards of Directors of Srei Infrastructure Finance Limited and Srei Equipment Finance Limited under Section 45-IE(1) of the RBI Act, 1934. RBI cited governance concerns and defaults by the two NBFCs in meeting their payment obligations. Shri Rajneesh Sharma, former Chief General Manager, Bank of Baroda, was appointed Administrator under Section 45-IE(2). RBI also said it would soon begin resolution proceedings under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would apply to NCLT to have the Administrator appointed as Insolvency Resolution Professional.