The loans made by Reliance Capital to various group entities during 2019-20 resulted in a financial effect of about Rs 1,755 crore, according to a transaction auditor report presented to the administrator of the insolvency-bound firm.
The administrator of Reliance Capital, appointed under the Insolvency and Bankruptcy Code, 2016, enlisted the help of transaction auditor BDO India LLP to conduct an inquiry into the company’s affairs pertaining to the company’s transactions.
Based on the transaction auditor’s findings, the administrator filed applications in respect of disbursements to a total of seven entities before the Mumbai bench of the National Company Law Tribunal (NCLT) on October 22, 2022, Reliance Capital said in its regulatory filings on Friday.
All of these transactions were the loans made by Reliance Capital to the entities concerned. According to separate stock exchange filings, the administrator estimated a Rs 1,142.08 crore impact from a loan to Reliance Entertainment Network; Rs 203.01 crore to Reliance Unicorn Enterprises; Rs 162.91 crore to Reliance Big Entertainment (RBEPL); Rs 131.52 crore to Reliance Broadcast Network (RBNL); and Rs 59.12 crore to Reliance Business Broadcast News Holding.
Loans to Reliance Alpha Services and Zapak Digital Entertainment also had an impact of Rs 39.30 crore and Rs 17.24 crore, respectively (Zapak). Reliance Capital’s administrator is Nageswara Rao Y. According to the order of the NCLT bench in Mumbai dated December 6, 2021, he was appointed in conformity with the requirements of the Code.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
