Bombay High Court dismissed SREI group promoters' writ petition against the Reserve Bank of India's (RBI) recently suspending the board of the two group companies. The promoters had further sought a stay on initiating insolvency proceedings against SREI Infrastructure Finance (SIFL) and SREI Equipment Finance (SEFL).
The High Court said it was not inclined to entertain the matter.
The RBI would now be able to move Calcutta bench of the National Company Law Tribunal for initiating insolvency proceedings against the Srei group companies.
On October 4, the apex banker had superseded the Srei group board owing to governance issues and payment defaults in meeting multiple payment obligations. It further appointed former chief general manager of the Bank of Baroda, Rajneesh Sharma has been appointed administrator of the two entities.
The announcement came a week after creditors of the NBFC had rejected a proposal for a one-year standstill from any action for recovering dues estimated to be about Rs 35,000 crore. The banks with payments due had moved RBI for a resolution similar to DHFL.