rfl: RFL on track to restart its biz; most lenders approve Rs 2,300 cr OTS plan

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Debt-ridden Relicare Finvest Limited (RFL) Company Rs. 2,300 crore and hopes to resume its business operations in the New Year following the One Time Solution (OTS) offering. One time OTS process completed, RFL RBI will come out of the corrective action plan (CAP) imposed in January 2018 due to weak financial position.

According to sources, 14 of the 16 lenders have signed the OTS agreement and the remaining two are expected to sign in a couple of days, sources said. A query to the RFL did not elicit any response in this regard.

RFL is an NBFC unit Relicare Enterprises LtdAbout Rs 5,300 crore has been reserved for the consortium of leading lenders. State Bank of India (SBI) as part of the proposed OTS, the company has pledged Rs. 220 crores deposited.

The company and its promoter are ready to produce fee Although they have up to 90 days as per the OTS contract for settlement, the source said they are almost ready to pay them this month itself.

Sources say, due to improved collection and recovery, RFL has made money and the deficit for OTS may be reduced by its parent. The first debt restructuring (DR) scheme was rejected by the Reserve Bank of India (RBI) in March 2020 – TCG Advisory Pvt Ltd, a part of The Chatterjee Group – RFL on the basis that regulation was ‘not fit and proper’.

The revised DR plan also couldn’t go through, leading to OTS. The RFL is in a financial crisis due to misuse of funds by former promoters Shivinder Singh and his brother Malvinder Singh.

Several investigative agencies are probing the case of financial fraud of around Rs 4,000 crore. In 2020, RFL filed a First Information Report against the Singh brothers for alleged financial irregularities. Earlier this year, capital markets watchdog Sebi imposed a total penalty of Rs 60 crore on 10 companies, including the Singh brothers, in a case related to the diversion of RFL’s funds.

Additionally, the Singh brothers have been barred from the stock market for three years or until they recover the repayments with interest, and other companies for two years.

Notably, the parent company of RFL Relicare Enterprises 570 crore raised through preferential issue of shares in July 2021 Shares to its existing and new shareholders.

It had invested Rs.192.41 crore in September rights The issue of personal health promotion Insurance Business Maintenance Health Insurance.


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