Second blow for BoB as RBI rejects plan to send Anil Ambani firms to NCLT

The Reserve Bank of India (RBI) has rejected the move by Bank of Baroda (BOB) to send Anil Ambani group companies — Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) to the National Company Law Tribunal (NCLT) for debt resolution under Section 227 of the IBC.

According to a source, RBI is satisfied with the progress made by the lenders and by both companies towards successful resolution under its June 7 circular of last year.

BoB is the lead consortium of both companies and had sought RBI’s permission in May this year asking the regulator to send the company to the NCLT. Section 227 of the IBC gives special power to RBI and the Union government for referring financial services companies to the NCLT for debt resolution.