Bombay HC on October 7 fired the Petition of SREI Group against the Bank of India (RBI) backup action on SREI Infrastructure Finance Ltd (SIFL) and SREI EQUIPMENT FINANCE LTD (SEFL).
SREI Group Promoter, Adisri Commercial Private Ltd. has submitted a written petition against RBI challenging orders and also looking for lodging to begin the bankruptcy process on SREI Infrastructure Finance Ltd (SEFL).
While rejecting the petition, the court said that it would give a reason later, someone who was familiar with the development to MoneyControl.
“The Group will decide on future actions after seeing the reason,” said the person on anonymous requirements.
On October 4, the RBI announced the takeover of the board of directors of SREI Infra and SREI Equipment Finance Limited due to the problem of governance and default by the SREI group company.
The RBI also appointed Rajneesh Sharma, a former head of the General Manager at the Bank of Baroda, as an administrator.
HC orders are a jolt for Kolkata-based groups that have challenged the central bank’s decision.
Reacting to the RBI step on October 4, SREI Group, in official communication, has stated “Shock” about the RBI step and said it would explore legal choices. SREI Group said the bank regularly took funds from the Escrow account they controlled since November 2020.
“In addition, we have not received communication from the bank at any default,” Group said in a statement available for MoneyControl.
The RBI step comes a week after the SREI Group Creditor rejects the management proposal to provide a jammed company one year from every legal or recovered action which is estimated to be around RS 30,000 Crore.
Srei Group said it submitted a proposal to pay the full amount to the bank based on the submitted scheme based on section 230 of the 2013 Act company in October 2020. The bank did not accept it or propose a payment schedule that could be accepted by them, he said.
“The bank has controlled the company’s cash flow since November 2020. Almost RS 3,000 Crore has been collected by them, where they have been disbursed for themselves,” said the statement.
Over the past three decades, SREI has paid RS 30,000 Crore as a flower and another RS 20,000 Principal Crore to the bank, he said.
There has never been a delay in loans with SREI in the past before Covid-19 destroyed the country, the group said.
“We are also surprised because NCLT orders for all creditors are still in process. There are also orders for” no coercion steps “by creditors and / or regulators. We will take all the necessary steps as recommended by our lawyers in this matter. This is “the group said.
