RBI moves NCLT to initiate insolvency proceedings against Srei Group companies

The Reserve Bank of India (RBI) has moved National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Srei Group companies.

NCLT is likely to hear the central bank's plea today itself, sources informed CNBC-TV18.

"The central bank has filed an application to initiate IBC proceedings against SEFL, SIFL at NCLT Kolkata. The central bank is seeking the appointment of Rajneesh Sharma as insolvency resolution professional of Srei companies," sources said.

The moratorium on SREI companies is effective immediately with filing of IBC application at NCLT.

Meanwhile, the Bombay High Court on Thursday dismissed a writ petition filed by two promoters of infrastructure finance firm SREI group challenging the RBI's decision to supersede the boards of two of its non-banking financial companies and initiate insolvency proceedings against them. A bench of Justices Ujjal Bhuyan and Madhav Jamdar dismissed the plea, saying it will give detailed reasons later.

"We have heard the counsels. For reasons to be dictated separately, we are not inclined to entertain the writ petition. The writ petition is dismissed," the HC said.

On Monday, the Reserve Bank of India (RBI) had superseded the boards of two companies of the SREI group and appointed an administrator to run their affairs.

As per the HC order, two promoters, Adisri Commercial and Hemant Kanoria, had filed the writ petition challenging RBI's action. They said in the plea that RBI had acted in haste and in an arbitrary manner.