Debt-ridden Reliance Capital CEO resigns
Anil Ambani, the younger brother of Mukesh Ambani, the chairman of Reliance Industries, has suffered yet another setback. In fact, Dhananjay Tiwari, the CEO of Reliance Capital Limited (RCL), his debt-ridden company, has resigned. Dhananjay retired from service on March 15, 2022, according to information shared by the company in a regulatory filing.
The reasons for his resignation have not been revealed.
The reason for Dhananjay Tiwari’s resignation, however, has not been revealed by the company. Significantly, Anil Ambani’s company has a massive debt and is about to be sold. The Anil Ambani-owned company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) at the National Company Law Tribunal’s Mumbai Bench (NCLT). Significantly, at the company’s annual meeting in September 2021, the company informed its shareholders that the total outstanding liability on the company was around 40 thousand crore rupees.
Many large corporations are vying for a piece of the pie.
While Anil Ambani’s problems have worsened as a result of the RBI’s strictness, many veteran industrialists are interested in his Reliance Capital. Yes, a total of 14 companies are competing to buy it, including KKR, Piramal Finance, and Poonawalla Finance. According to a report, the deadline for submitting bids for Reliance Capital has been extended from March 11 to March 25.
In November 2021, the board was dissolved.
On November 29, the RBI dissolved Reliance Capital’s board of directors, and Nageswara Rao, a former executive director of the Bank of Maharashtra, was appointed as the company’s administrator. The central bank also formed a three-member panel to assist the administrator the next day. RCL, led by Anil Ambani, is facing several serious allegations of loan default and poor corporate governance.