RBI has taken two Srei companies out of board control after payment defaults

• The regulator has initiated insolvency proceedings against two SREI companies
• Reserve Bank of India has appointed Rajneesh Sharma, ex-chief general manager at Bank of Baroda as the administrator of the companies that defaulted.
• Srei group spokesperson told Business Insider earlier that its dues to lenders amounted to ₹28,000 crore.

Kolkata based Srei Group companies enter insolvency proceedings as the Reserve Bank of India (RBI) has taken the leash away from board of directors of Srei Infrastructure Finance and Srei Equipment Finance after the company defaulted on loan repayments.

Rajneesh Sharma, the former chief general manager at Bank of Baroda as the administrator of the two Srei group companies. Some of the biggest lenders to the group that is known for funding infrastructure projects include UCO Bank, Canara Bank, Bank of India and Axis Bank among other public sector and private banks, based on two people aware of the development, who spoke to Business Insider requesting anonymity.


The bank officials cited above say that the group owes ₹30,000 crore, whereas the company, which disputed the figure, earlier told Business Insider that the amount due to the lenders is ₹28,000 crore (about $4 billion). The group had sought one-year standstill, protection from legal proceedings, but the lenders had reportedly rejected the proposal.

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