RBI appoints former SBI official VN Chalasani on advisory panel of Srei Group's reshaping

Last year, in October, RBI before the NCLT Kolkata bench had filed applications for initiating corporate insolvency resolution process against SIFL and SEFL. (Aniruddha Chowdhury/Mint) — Last year, in October, RBI before the NCLT Kolkata bench had filed applications for initiating corporate insolvency resolution process against SIFL and SEFL. **(Aniruddha Chowdhury/Mint)**

2 min read . Updated: 23 Jun 2022, 07:23 PM IST Livemint

The committee will be advising the Administrator on the operations of the SIFL and SEFL during the corporate insolvency resolution process.

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The Reserve Bank of India (RBI) on Thursday appointed Venkat Nageswar Chalasani as a member of the advisory committee of Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) with immediate effect.

Chalasani was roped in after R. Subramaniakumar resigned from the Advisory Committee with effect from June 22, 2022.

In a statement, RBI said, “Consequent upon resignation of R. Subramaniakumar from the Advisory Committee with effect from June 22, 2022, it has been decided to appoint Venkat Nageswar Chalasani as a member of the Advisory Committee with immediate effect."

The advisory committee now comprises - Venkat Nageswar Chalasani, former Deputy Managing Director, State Bank of India (SBI); T.T. Srinivasaraghavan, former Managing Director, Sundaram Finance; Farokh N Subedar, former Chief Operating Officer and Company Secretary, Tata Sons.

The committee will be advising the Administrator on the operations of the SIFL and SEFL during the corporate insolvency resolution process.

Last year, in October, RBI before the NCLT Kolkata bench had filed applications for initiating corporate insolvency resolution process against SIFL and SEFL. RBI had also constituted a three-member advisory panel to assist Rajneesh Sharma, Administrator of Srei Infrastructure Finance Limited (SIFL) and Srei Equipment Finance Limited (SEFL) in the discharge of his duties.

Sre Group has a mountain of debt of around ₹18,000 crore owing to about 15 lenders involving Axis Bank, UCO Bank, and SBI. Also, the Group has another nearly ₹10,000 crore of external commercial borrowings and bonds.

Earlier this month, Srei Infrastructure Finance announced that the administrator of wholly-owned subsidiary Srei Equipment Finance has received reports of fraudulent transactions during the fiscal year 2019-2020 to 2020-2021. The monetary impact due to the fraudulent transactions on Srei Equipment will be to the tune of ₹3,025.73 crore.