Reliance Capital’s loans to its group companies result in financial impact of Rs 1,755 crore | Techno Glob

Reliance Capital’s loans to its various group entities have had a financial impact of more than Rs 1,755 crore for the company, according to a report.

These numbers are for FY20.

The report in question is that submitted by the transaction auditor BDO India LLP to the insolvency-related administrator of Reliance Capital.

BDO India LLP is assisting the BAC-appointed trustee of Reliance Capital to conduct an investigation into matters relating to the company’s transaction.

Nageswara Rao Y is the director of Reliance Capital. He was appointed in accordance with the provisions of the Code pursuant to the order of the NCLT bench in Mumbai dated December 6, 2021.

Based on the observations of the auditor of the transaction, the administrator on October 22, 2022 filed requests regarding disbursements to a total of seven companies before Mumbai NCLT, Reliance Capital said in various regulatory filings on Friday.

All these transactions are loans granted by the company to group entities.

In documents filed separately with the exchanges, the administrator, based on BDO’s report, disclosed that there was an estimated impact of Rs 1,142.08 crore through a loan to Reliance Entertainment Network Pvt Ltd (RENPL); Rs 203.01 crores 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 crores to Reliance Business Broadcast News Holding (RBBNHL).

In addition, there was an impact of Rs 39.30 crore on the loan account to Reliance Alpha Services (RASPL) and Rs 17.24 crore to Zapak Digital Entertainment (Zapak).

The administrator filed claims against those companies on Oct. 22, 2022, and they are subject to NCLT arbitration, the company said.

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