InvestorQ : Why is SREI group filing a legal case against RBI?
vidhya Laxmi made post

Why is SREI group filing a legal case against RBI?

sarah Leo answered.
11 months ago

A day after the RBI suspended the board of SREI group, there are some interesting developments taking place. In response to the RBI suspending the SREI board and superseding the boards of SREI Infrastructure and SREI Equipment Finance, the promoters have decided to adopt the legal route. The Kanoria family have filed a writ petition against the Reserve Bank of India in the Honourable Bombay High Court.

The Kanorias have effectively called for a stay on the RBI proceedings. The writ petition is slated for hearing on 07th October. It may be recollected that the RBI had already appointed Rajneesh Sharma, former CGM of Bank of Baroda, as the administrator for SREI group. Mr. Hemant Kanoria, promoter of SREI, pointed out that SREI group had adhered to all strictures imposed by the RBI and banks and the problems were purely due to the systemic stress created by the infrastructure sector.