NEW DELHI: The Reserve Bank of India (RBI) on Thursday filed an insolvency application against Anil Ambani's Reliance Capital at the Mumbai bench of the National Company Law Tribunal, the central bank informed through a statement.
The insolvency application has been filed under rules governing the insolvency resolution process and liquidation of Financial Service Providers (FSPs).
With this Reliance Capital would become the third FSP to be referred to NCLT for resolution under the Insolvency and Bankruptcy Code (IBC).
Earlier, RBI has initiated similar proceedings against Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).
With the filing of the insolvency application, an interim moratorium has come into force, which means that no new legal proceedings can be filed against the defaulting company and all pending suits against it remain suspended.
No recovery proceedings against the company as well as its promoters would be allowed during the moratorium period.
Reliance Capital cannot also sell or dispose off any of its assets. However, no supply of essential goods or services to the corporate debtor would be terminated or suspended during the moratorium period.
The interim moratorium period ends either on rejection or acceptance of the insolvency application.