A day after superseding the board of directors of Reliance Capital, the Reserve Bank of India (RBI) has appointed a three-member advisory committee to assist the administrator of the troubled company.

The committee includes Sanjeev Nautiyal, ex-DMD of State Bank of India; Srinivasan Varadarajan, ex-DMD of Axis Bank; and Praveen P Kadle, ex-MD & CEO, Tata Capital Ltd.

“It may also be mentioned that the Insolvency and Bankruptcy Rules, 2019 provide for the concerned financial sector regulator appointing a Committee of Advisors to advise the Administrator in the operations of the financial service provider during the corporate insolvency resolution process,” the RBI said.

On November 29, the RBI appointed Nageswara Rao Y, former executive director of Bank of Maharashtra, as the administrator while superseding the board of the Anil Ambani-controlled company due to serious governance issues and defaults on various payment obligations to its creditors.

 The central bank said it will shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy code (IBC). It will also apply to the National Company Law Tribunal (NCLT) for appointing the administrator as the Insolvency Resolution Professional. 

Reliance Capital will join other non-banking financial companies (NBFCs) like DHFL and Srei Group where the RBI superseded boards and they were brought under the insolvency procedure.

 Reliance Capital, a part of Anil Dhirubhai Ambani Group, has repeatedly failed to repay its debt obligations to lenders or bondholders. It has a ‘D’ or default rating.