Lenders will consider the proposal of RFL: Religare Enterprises

0
2
Lenders will consider the proposal of RFL: Religare Enterprises

RFL, which has been a victim of siphoning off of funds by its erstwhile promoters, has initiated legal actions for recovery and begun its path towards revival, it added. The company has been in financial distress, primarily due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh

RFL has been barred from undertaking fresh business as it is under the corrective action plan (CAP) of the Reserve Bank of India (RBI) since January 2018 due to its weak financial health.

Story Highlights

  • RFL has received a communication dated May 31, 2022 from its lead lender informing that in a meeting held on May 20, 2022, lenders have in principle agreed to consider the OTS proposal of RFL and to put up the same to their respective authorities, REL said.

  • REL Chairman Rashmi Saluja said with the completion of OTS, all the legacy issues will be put behind and the Religare group will stride forward to focus on future growth and becoming a 360-degree financial services provider.