RBI supersedes Srei Infrastructure and Srei Equipment Finance

05 Oct 2021 CW Team

The Reserve Bank of India (RBI) has superseded the boards of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL).

The action was taken owing to governance concerns and defaults by both companies. RBI told the media that the insolvency process would be initiated soon for both companies.

Under Section 45-IE (1) of the Reserve Bank of India Act 1934, RBI has superseded the Boards of Directors of SIFL and SEFL, owing to the governance concerns and defaults by the preceding companies in meeting their several payment obligations, RBI said.

Former Chief General Manager of Bank of Baroda, Rajneesh Sharma, has been appointed as the administrator by the central bank.

RBI also plans to initiate the resolution process of both the companies under the Insolvency and Bankruptcy Rules 2019. It will also apply to the National Company Law Tribunal (NCLT) for appointing the administrator as the Insolvency Resolution Professional.

The repression of RBI comes after a week Srei Group creditors refused the request to delay legal or other actions to recover dues of Rs 35,000 crore.

The Non-Banking Financial Company (NBFC) has been struggling since December 2020, with a loss of about 230-250 workforce because the Covid-19 pandemic caused an asset-liability mismatch.

Therefore, the lenders of Srei took over the financial matter in a bid to recover the dues. They even capped the salaries of their top executives to Rs 50 lakh annually, which was increased this year in April.

According to a report, in FY21, the CEO and other senior officials reduced their pay by 20-25%. Chairman Hemant Kanoria has reduced his pay by 30% and waived the remuneration of his payment from 1st November 2020.

Many senior officials, including the chief operating officer, company secretaries, the head of treasury and the head of corporate, have left the company.

Srei and its Board members wrote several times to the banks for releasing the arrears and overdue payments of the provident funds and taxes, but nothing happened. Srei has also intimated the RBI about their grievances.

Srei owns nearly Rs 18,000 crore to about 15 lenders such as the Axis Bank, UCO Bank and the State Bank of India (SBI).

Image Source

The Reserve Bank of India (RBI) has superseded the boards of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL). The action was taken owing to governance concerns and defaults by both companies. RBI told the media that the insolvency process would be initiated soon for both companies. Under Section 45-IE (1) of the Reserve Bank of India Act 1934, RBI has superseded the Boards of Directors of SIFL and SEFL, owing to the governance concerns and defaults by the preceding companies in meeting their several payment obligations, RBI said. Former Chief General Manager of Bank of Baroda, Rajneesh Sharma, has been appointed as the administrator by the central bank. RBI also plans to initiate the resolution process of both the companies under the Insolvency and Bankruptcy Rules 2019. It will also apply to the National Company Law Tribunal (NCLT) for appointing the administrator as the Insolvency Resolution Professional. The repression of RBI comes after a week Srei Group creditors refused the request to delay legal or other actions to recover dues of Rs 35,000 crore. The Non-Banking Financial Company (NBFC) has been struggling since December 2020, with a loss of about 230-250 workforce because the Covid-19 pandemic caused an asset-liability mismatch. Therefore, the lenders of Srei took over the financial matter in a bid to recover the dues. They even capped the salaries of their top executives to Rs 50 lakh annually, which was increased this year in April. According to a report, in FY21, the CEO and other senior officials reduced their pay by 20-25%. Chairman Hemant Kanoria has reduced his pay by 30% and waived the remuneration of his payment from 1st November 2020. Many senior officials, including the chief operating officer, company secretaries, the head of treasury and the head of corporate, have left the company. Srei and its Board members wrote several times to the banks for releasing the arrears and overdue payments of the provident funds and taxes, but nothing happened. Srei has also intimated the RBI about their grievances. Srei owns nearly Rs 18,000 crore to about 15 lenders such as the Axis Bank, UCO Bank and the State Bank of India (SBI). Image Source

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..