Latest News | Loans to Group Entities Caused Rs 1,755cr Financial Impact to RCap in FY20: Transaction Auditor Report
Get latest articles and stories on Latest News at LatestLY. Loans given by Reliance Capital to various group entities during 2019-20 caused a financial impact of over Rs 1,755 crore, according to a transaction auditor report submitted to the administrator of the insolvency-bound company.
New Delhi, Oct 28 (PTI) Loans given by Reliance Capital to various group entities during 2019-20 caused a financial impact of over Rs 1,755 crore, according to a transaction auditor report submitted to the administrator of the insolvency-bound company.
The administrator of Reliance Capital appointed under the Insolvency and Bankruptcy Code, 2016, took assistance from transaction auditor BDO India LLP to conduct an investigation of the affairs of the company related to the company's transactions.
Based on the observations of the transaction auditor, the administrator on October 22, 2022, filed applications in respect of disbursements to a total of seven companies before the Mumbai bench of the National Company Law Tribunal (NCLT), Reliance Capital said in various regulatory filings on Friday.
All these transactions were in the nature of loans given by Reliance Capital to the entities involved.
In separate filings to stock exchanges, the administrator on the basis of the report from BDO said there was an estimated impact of Rs 1,142.08 crore by way of a loan to Reliance Entertainment Network Pvt Ltd (RENPL); Rs 203.01 crore to Reliance Unicorn Enterprises (RUEPL); Rs 162.91 crore to Reliance Big Entertainment (RBEPL); Rs 131.52 crore to Reliance Broadcast Network (RBNL); Rs 59.12 crore to Reliance Business Broadcast News Holding (RBBNHL).
Also, there was an impact of Rs 39.30 crore by way of loans to Reliance Alpha Services (RASPL) and Rs 17.24 crore to Zapak Digital Entertainment (Zapak).
The company said the administrator filed applications against these companies on October 22, 2022, and they are subject to adjudication by the NCLT.
Nageswara Rao Y is the administrator of Reliance Capital. He was appointed in accordance with the provisions of the Code as per the order of the NCLT bench at Mumbai dated December 6, 2021.
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