Anil Ambani-promoted Reliance Capital has gone into the bankruptcy court. The National Company Law Tribunal (NCLT) on Monday admitted the Reserve Bank of India's (RBI) plea to initiate insolvency resolution proceedings against Reliance Capital, which owes its creditors over Rs 19,805 crore. 

Last week, the RBI filed an application for the initiation of Corporate Insolvency Resolution Process (CIRP) against the company. The regulator had superseded Reliance Capital's board due to serious governance issues and defaults on various payment obligations to its creditors.

Earlier on Monday, the Mumbai bench of the NCLT comprising Pradeep Narhari Deshmukh and Kapal Kumar Vohra reserved the order. Later, the bench admitted the RBI's application. In a statement, the company's promoters said it supports the RBI application of referring the company to the NCLT under section 227 for the fast track resolution.

Section 227 of the Insolvency and Bankruptcy Code (IBC) enables the government to notify, in consultation with the financial sector regulators, Financial Service Providers or categories of FSPs for the purpose of insolvency and liquidation proceedings. 

A majority of Reliance Capital’s obligation to creditors is through bonds under the trustee Vistra ITCL India. 

Reliance Capital is the third non-banking financial company (NBFC) to go for resolution under the IBC after Dewan Housing Finance (DHFL) and Kolkata-based Srei Group.