Top Section
Explore Business Standard
Don’t miss the latest developments in business and finance.
Religare Finvest
Debt-ridden Religare Finvest Ltd (RFL) on Friday said it has signed a settlement agreement with all its lenders for a one-time settlement, clearing the deck for the NBFC to exit from the Corrective Action Plan imposed by the RBI. Religare Enterprises, the parent company of RFL, has entered into an agreement in connection with the OTS with all 16 secured lenders for full and final settlement with respect to all their outstanding dues, a regulatory filing said. RFL has been under a Corrective Action Plan (CAP) since January 2018 due to its weak financial health. RFL, an NBFC arm of Religare Enterprises Ltd, owed about Rs 5,300 crore to the consortium of lenders led by the State Bank of India (SBI). Other lenders include the Bank of Baroda, Union Bank of India, Canara Bank, Punjab National Bank, Bank of India, IDBI Bank, Punjab & Sind Bank, and Bank of Maharashtra. The regulatory filing said RFL would ensure compliance with the terms and conditions of the said OTS (one-time ...
Debt-ridden Religare Finvest Ltd (RFL) is hopeful of restarting its business operation in the New Year following the company's proposal of Rs 2,300 crore One Time Settlement (OTS) finding favour from most of the lenders. Once the OTS process is completed, RFL will come out of the Corrective Action Plan (CAP) imposed by the Reserve Bank of India in January 2018 due to its weak financial health. According to sources, 14 out of 16 lenders have signed the OTS agreement and the remaining two are expected to sign in a day or two, sources said. Query to RFL did not elicit any response in this regard. RFL, an NBFC arm of Religare Enterprises Ltd, owed about Rs 5,300 crore to the consortium of lenders led by State Bank of India (SBI). As part of the proposed OTS, the company in June 2022 deposited Rs 220 crore earnest money with the lead lender demonstrating its commitment towards RFL revival. The company and its promoter are ready to make payment during this month itself even though they
Capital markets regulator Sebi has imposed a fine totalling Rs 21 crore on 52 entities, including Fortis Healthcare Holdings, in a case pertaining to huge diversion and misutilisation of funds of Religare Finvest, an arm of Religare Enterprises. They have been asked to pay the fine within 45 days, according to an order passed by the Securities and Exchange Board of India (Sebi) on Monday. The case involves a complex web of transactions whereby the funds of listed company Religare Enterprises Limited (REL) were diverted through its subsidiary Religare Finvest Ltd (RFL) for the ultimate benefit of the erstwhile promoters -- RHC Holding, Malvinder Mohan Singh and Shivinder Mohan Singh. Funds were also misutilised for repayment of earlier loans taken from RFL. "The whole scheme of fraud led to diversion of funds of Rs 2473.66 crore out of a material subsidiary of REL and also mis-utilisation of funds of Rs 487.92 crores of RFL," Sebi said in its 390-page order. Such a huge diversion an
Religare Enterprises on Tuesday said its debt-ridden subsidiary Religare Finvest Ltd (RFL) has defaulted on an interest payment due on March 28 for the non-convertible debentures (NCDs). The company defaulted on an interest amount of Rs 2.41 crore, Religare Enterprises said in a regulatory filing. As a result, four investors would be deprived of their interest due. It is to be noted that the RBI on March 11 declined the restructuring of RFL with Religare Enterprises continuing as its promoter since debt-ridden NBFC has been declared as "Fraud" exposure by lenders. RFL subsequently filed a writ petition before the Delhi High Court seeking a stay of operation of the aforesaid order besides other reliefs, it said. The Delhi High Court had stayed the impugned communication of the RBI dated February 11, 2022. As advised by RFL lenders, it said, all payments of RFL need prior certification from ASM (Agencies for Specialized Monitoring) appointed by the lenders. "Accordingly, RFL reques