RFL is a Non-Banking Financial Company (NBFC) and an arm of Religare Enterprises Limited (REL). The company has been in financial distress since 2018 because of allegations of misappropriations of funds by its former promoters. The company had been barred from taking any business and was put under the Corrective Action Plan (CAP) of the RBI.
Appearing for RFL, Senior Advocate Kapil Sibal argued that the RBI’s fresh order is “wholly perverse” since it was based on the premise that there has been no change in the ownership of REL, which is still the promoter shareholder of RFL.
Sibal further submitted that the RBI’s presumption overlooked the fact that the erstwhile promoters are no longer in management, and criminal proceedings have been initiated against them at the behest of the petitioner.
Along with Sibal, Advocates Pratap Venugopal, Surekha Raman, Amarjit Singh Bedi and Vijay Valsan appeared for Religare Finvest. Despite an advance notice, no one appeared for the RBI in the matter.
Source: Barandbench
