Why did the High Court reject SREI group’s pleas against the RBI decision to suspend the SREI board?

The high court decision was largely along expected lines. RBI had initiated the action at the behest of UCO Bank and there was really no point in SREI trying to file a court case against RBI. That is the job of a regulator. The RBI decision to supersede the boards of SREI Infrastructure Finance and SREI Equipment Finance was triggered after the banks were sceptical about the ability and willingness of SREI group to settle their dues.

Earlier, it may be recollected that SREI group had sought a stay on the RBI insolvency proceedings against the two entities. The promoter of SREI group, Hemant Kanoria, has underlined that he was disappointed as the SREI group was doing its best to abide by the strictures of the RBI and the banks. The trigger came last week after SREI asked for a 1-year standstill for collection of dues. Subsequently, banks asked RBI to intervene, like DHFL.