Bombay High Court on 7 October excused SREI Group's application against Reserve Bank of India's (RBI) activity on SREI Infrastructure Finance Ltd. (SIFL) and SREI Equipment Finance Ltd. (SEFL).
SREI Group advertisers, Adisri Business Private Ltd, had recorded a writ appeal against the RBI testing the request and had additionally looked for a stay on starting bankruptcy procedures against SREI Infrastructure Finance Ltd. (SIFL) and SREI Equipment Finance Ltd. (SEFL).
While excusing the appeal, the court said that it will give the reasons later, an individual acquainted with the improvement.
"The gathering will choose the future strategy subsequent to taking a gander at the reasons," the individual said in state of namelessness.
The RBI move came a week after creditors of SREI Group rejected the management’s proposal to grant the company a one-year standstill from any action—legal or otherwise—to recover dues estimated at around Rs. 30,000 crore.
SREI Group said, it submitted a proposal to pay the full amount to banks under a scheme filed under Section 230 of the Companies Act 2013 in October 2020. The banks neither accepted it nor proposed a payment schedule acceptable to them, it said.
"Banks have been controlling the company's cash flow since November 2020. Almost Rs. 3,000 crore has been collected by them, out of which they have been disbursing to themselves," the statement said.
Over the last three decades, SREI has already paid Rs. 30,000 crore as interest and another Rs.20,000 crore principal to banks, it said.
There has never been any delay in loan servicing by SREI in the past before Covid-19 ravaged the country, the group said.
"We are also surprised because the NCLT order for all creditors is still in process. There is also an order for "no coercive measures" by the creditors and/or regulators. We will take all necessary steps as advised by our lawyers in this regard," the Group said.
The RBI would soon initiate the process of resolutions of the non-banking finance companies (NBFCs) under the Insolvency and Bankruptcy Rules 2019 and ask National Company Law Tribunal (NCLT) to appoint the administrator as the insolvency resolution professional, the central banks said in a statement.
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