New Delhi, Apr 21 (PTI) With a debt restructuring plan in place, Religare Enterprises Ltd (REL) Chairperson Rashmi Saluja has said the company would retain its troubled subsidiary RFL in its fold at the moment and monetise it at the right time.

In line with the debt restructuring (DR) plan, the company paid Rs 400 crore to lenders on March 31, 2021.

Religare Finvest Ltd (RFL), an NBFC arm of Religare Enterprises Ltd, 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.

"Problems of RFL are almost sorted out. RFL is going to be a liquid company. According to the DR plan, it is also going to have additional funding. The company has repaid about Rs 7,500 crore to lenders. It would be completely debt free company post DR plan," she told PTI in an interview.

Post restructuring, RFL would be a positive networth company and REL as a promoter deserves to run the company, she added.

Asked about selling RFL in the future, Saluja said following the debt recast, the company would focus on restoring its glory and valuation will follow.

Monetisation would be done at the right time, she added.

Stressing that the government policy is very conducive to run a non-banking finance company (NBFC), she said "we should wait and watch how this company shapes up."

The company is actively pursuing recovery cases, including Lakshmi Vilas Bank (now DBS India).

The court has given DBS India notice by making them a party to the case, which makes the company hopeful of realisation of money, she said.

RFL expects to recover its fixed deposits, with an interest of around Rs 950 crore, from Lakshmi Vilas Bank (LVB), whose officials allegedly misappropriated the FD amount in connivance with erstwhile Religare promoters Singh brothers.

The company has been in financial distress due to alleged misappropriation of funds by erstwhile promoters Shivinder Singh and his brother Malvinder Singh. Multiple investigative agencies are probing the case of financial bungling of about Rs 4,000 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)