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The RBI’s move against Reliance Capital follows a similar step taken against Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd earlier this year.

India’s central bank said on Monday it will initiate bankruptcy proceedings against Reliance Capital Ltd and superseded the non-banking financial company’s board on governance concerns.

The Reserve Bank of India (RBI) appointed https://bit.ly/31dTTSh Nageswar Rao Y, a former executive director at Bank of Maharashtra Ltd, as the administrator of Reliance Capital.

In June 2019 auditors raised several red flags around Reliance Capital’s fourth-quarter results, including a lack of clarity in accounting methodology.

The company has since then failed to make several debt obligation payments.

The RBI’s move against Reliance Capital follows a similar step taken against Srei Infrastructure Finance Ltd and Srei Equipment Finance Ltd earlier this year.

Reliance Capital did not immediately respond to a request for comment.

(Reuters)